Wednesday, 18 December 2019

Press Release - Extension of commitment terms

Subject: Assessment by the HCC of specific commitment terms proposed by "DELTA SA" and "MEVGAL SA" so as to address competition concerns according to 650/2017 Decision of HCC in the market of fresh cow milk

By means of its unanimous decision no. 697/2019, and pursuant to commitment term Α.1.2 accepted by decision no. 650/2017, the Hellenic Competition Commission (“HCC”), sitting in plenary session, decided the extension of commitment terms A.1 – Α.1.1 accepted by its decision no. 650/2017 for one more year. 

In the HCC’s preliminary assessment of the practices under scrutiny, "DELTA SA" and "MEVGAL SA" took on, inter alia, the commitment to procure (directly or through third parties) fresh cow milk from each of their milk producers, until 21.10.2017, in 12 prefectures of Greece under a minimum guaranteed price, based on a specific mathematical formula[1]. This commitment concerns all the milk producers which supplied "DELTA SA" and/or "MEVGAL SA" with fresh cow milk until 21.10.2017. In any case, "DELTA SA" and/or "MEVGAL SA" maintain the right to offer higher prices.

Given the assessment of the effectiveness of the above mentioned commitment terms and the competitive conditions of fresh cow milk market in Greece, the HCC decided by its decision no 697/2019 the extension of commitment terms A.1 – Α.1.1 as accepted by its decision no. 650/2017 for one more year, that is, from 21.10.2019 until 20.10.2020. In addition, the HCC decided to review "DELTA’s SA" and "MEVGAL’s SA" compliance with the commitments’ decision no. 650/2017.


[1]For the calculation of a minimum guaranteed price we use the weighted average price of the ELGO DIMITRA database and weighted average prices of "DELTA SA" and "MEVGAL SA.

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