Temperature-controlled transport suppliers fined for prohibited cooperation
When two companies offering temperature-controlled transport divided up customers on the market between themselves, they breached the prohibition on anti-competitive cooperation between undertakings. The Swedish Competition Authority has therefore decided that one of the companies must pay SEK 7 million in administrative fines. The other company will not be issued with an administrative fine as the company reported the breach to the Swedish Competition Authority.
At the beginning of 2011, the two companies, Frigoscandia AB (formerly Bring Frigo AB) and the Norrmejerier Cooperative, concluded a collaboration agreement including an agreement to refrain from competing for one another’s customers. According to the agreement, which expired at the end of 2021, the companies would not work in parallel with the same customers nor cultivate relationships with one another’s existing customers. The result was that the two companies divided the market for temperature-controlled transport in northern Sweden between them.
“When companies restrict competition by dividing customers between them, they commit a serious breach of competition regulations that may result in high fines. Prohibited cooperation eliminates competition and presents a risk that prices will rise for customers,” says Rikard Jermsten, Director General of the Swedish Competition Authority.
Frigoscandia AB reported the breach to the Swedish Competition Authority in 2021. The company will therefore be granted immunity and will not have to pay an administrative fine. For a company to be granted immunity it must be the first to report the breach and the report must contain information that allows the Swedish Competition Authority to intervene. The company must also cooperate with the Swedish Competition Authority during the investigation.
“The leniency programme is an important element of supervision. And for the company being the first to inform the Swedish Competition Authority about a prohibited collaboration it may mean that the company is granted immunity or a reduction in the administrative fine,” explains Jermsten.
Pursuant to the Swedish Competition Authority’s decision, the Norrmejerier Cooperative will pay an administrative fine of SEK 7 million, while the fine will be waived for Frigoscandia AB.
For further information, please contact:
Charlotte Råsbrant Bergström, Communications Officer, +46 (0)8 700 16 28, email@example.com
Linda Skoogberg, Competition Legal Counsel and Project Manager, +46 (0)8 700 16 80, firstname.lastname@example.org
Last updated: 2023-07-06
Press release5 july 2023