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ANTI-COMPETITIVE AGREEMENT BETWEEN MAXIMA LT AND UAB MANTINGA RESULTED IN HIGHER COSTS FOR CONSUMERS

08 12 2014

Competition Council (the KT) disclosed an anti-competitive agreement between food retail chain MAXIMA LT, UAB (MAXIMA) and frozen bakery producer UAB Mantinga (Mantinga). The companies fixed retail prices of bakery goods produced by Mantinga and, thus, breached Article 5 part 1 of the Law on Competition and Article 101 part 1 of the Treaty on the Functioning of the European Union.

For a decade long breach MAXIMA was imposed a fine of 16,8 million euros and Mantinga 4,4 million euros.

The provisions of the supply contracts concluded between MAXIMA and Mantinga, their internal correspondence and other factual circumstances indicate long-lasting and consistent agreement not to sell Mantinga’s bread and other bakery goods below a base price, fixed on Mantinga’s price list.

The KT found enough evidence to prove that the agreement on “shelf prices” resulted from a desire to build and maintain higher profit margins at the expense of consumers.

“During the investigation, the companies argued that they were trying to offer the most favourable prices for consumers. However, the KT found that they sought to “maintain high prices”, “block discounts” and “raise the shelf prices”. This anti-competitive agreement helped to maintain higher retail prices for almost a decade and disadvantaged consumers." - said Šarūnas Keserauskas, the Chairman of the KT.

The KT’s experts also investigated whether the actions of other retail companies met competition requirements. The KT determined that the agreement could have influenced Mantinga’s product prices in other retail chains.

According to the collected data, MAXIMA and Mantinga were interested in having other retail chains join their agreement. However, there was no sufficient evidence to prove that UAB Prisma LTUAB PalinkUAB NORFOS MAŽMENA and UAB RIMI Lietuva participated in the agreements, therefore and the probe against latter companies was closed.

KT opened the investigation on 21 September 2010.

Last updated: 21 06 2016