Thursday, 21 December 2017

Decision 653/2017

Decision of the Competition Commission ordering, on an ex officio basis,  interim measures pursuant to article 25 par. 5 of the Greek law 3959/2011, which concerns the market of potatoes and dairy products.

Decision  653/2017
File (PDF) Decision 653/2017
Date of Publication of Decision December 21st, 2017
Issue Number of Government Bulletin  
Relevant Market  Potato market and dairy products
Proceedings  Interim measures
Legal Framework  Article 1 of the Greek Competition Act 3959/2011 and article 101 TFEU.
Decision  Accept commitments
Notifying Company  Ex officio investigation
Company under control  Union of Agricultural Co-operatives of Naxos (Agricultural Company S.A.)

Summary of Decision

The ex-officio investigation of the General-Directorate for Competition in the association AES NAXOS SA was launched on the occasion of the 29.11.2017 Announcement, according to which the latter informed the potato producers of Naxos about the imposition of a half reduction of the price of milk that they will deliver to AES NAXOS S.A. to those who produce potato of the winter harvest before 24-12-2017, in violation of a decision of the Board of the association.

According to the statement of objections, any compliance of the members of AES NAXOS with the above decision is probable that, in view of the upcoming festive season, it was able to bring significant negative effects on competition in the potato market, as the availability of potatoes (as winder crops) would be limited to the detriment of both Naxos producers and consumers. In addition, it could have an impact on the milk supply market, through the halved purchase price of milk, which could cause significant losses to producers.

The Plenary Session of the Commission, unanimously, in a decision taken during the procedure of interim measures, accepted the commitments of AES NAXOS, according to which:

·         Recalls immediately and throughout its content, the decision no. 217/2017 of the Board of AES NAXOS dated 24.11.2017, which asked the potato producers not to sell (potatoes) of autumn crop to people who would sell it outside Naxos and that it would inform the producers that the later are free to sell the potatoes of autumn crop outside Naxos, without any restrictions and without any consequences or sanction and in particular as regards the threat of supply of the milk at half price delivered by the producers during the year 2018 to the AES NAXOS.

·         Undertook the obligation to notify the press release to the press and to all members / shareholders and producers of potatoes and dairy products of AES NAXOS with a letter of withdrawal and to publish it immediately on its website and in its newspaper, as well as in a daily local newspaper and to post it in conspicuous places, where the producers come for their transactions.

·         AES NAXOU also undertook to send to the Competition Commission within fifteen (15) days from the notification of its decision, evidence of its above actions, as well as to refrain from issuing similar decisions in the future (including related recommendations and which restrict or distort competition.

The same decision of the Commission stipulated that in case of non-compliance with the above commitments, which become mandatory, the Competition Commission may impose a fine on the NAXOS AU of two thousand (2,000) euros for each day of non-compliance with the above.
Judicial Means  
Decisions by the Court of Appeal of Athens(Administrative Division) -
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