The Portuguese Competition Authority (AdC) announced on Wednesday that it has sanctioned a company for abusing its dominant position in the market for the collection, distribution, and commercialization of Madeira bananas.
“The company actively collaborated with the AdC by agreeing to a settlement procedure, refraining from contesting the charge, ending the practice, and voluntarily paying the fine of 30,000 euros,” the AdC stated in a release.
The Competition Authority explained that “the amount of the fine considered the company’s turnover, the short duration of the infringement, and the mitigating circumstances resulting from the reached settlement agreement, including the company’s full cooperation and its immediate readiness to cease the practice and its effects.”
The AdC also explained that “on August 7, 2024, they issued a recommendation to the Autonomous Region of Madeira (RAM) to mitigate legal barriers to the entry of new companies in the banana sector and to increase the diversity of operators, especially in the commercialization phase, in the region.”
Subsequently, “following this recommendation and monitoring of the market by the AdC, behaviors likely to constitute restrictive practices of competition were detected.”
What is at stake?
“The conduct in question, consisting of requiring producers of Madeira bananas to sign an exclusivity declaration, violates Article 11 of the Competition Law and Article 102 of the TFEU and has been occurring at least since January 2025,” according to the statement.
The AdC continued, “these behaviors can distort the competitive process by imposing conditions on banana producers designed to maintain the company’s dominant market position, thereby hindering effective competition.”
“The Competition Law prohibits ‘the abusive exploitation by one or more companies of a dominant position in the national market or in a substantial part of it’,” it further explained.
The “company collaborated with the AdC from the start of the process and agreed to the settlement procedure, which guaranteed a reduction in the fine amount.”
“The settlement procedure allows for significant procedural gains, while still sanctioning companies that commit competition breaches. The AdC approved, in July 2024, regulations to implement the settlement procedure terms, systematizing and detailing the steps adopted by the AdC within this instrument, to foster better cooperation between the institution and the involved parties,” it was further noted.
With this consultation, the AdC stated it aims to define measures to overcome the identified issues in the sector.
Lusa | 18:19 – 22/07/2025
