Adjusted preliminary fines in price hunting case

The Norwegian Competition Authority has today sent a Statement of Objections to Coop, Norgesgruppen and Rema, the parties in the so-called price hunting case. This Statement of Objections replaces the preliminary calculation of fines in a previous Statement of Objections.

The Competition Authority conducted unannounced inspections at the premises of all three parties in 2018. The Authority was concerned that the parties’ agreement allowing their competitors’ price hunters to access their stores and collect large amounts of price information restricted competition.

In December 2020, the Authority warned the parties in a Statement of Objections that the agreement could restrict competition by object and by effect in violation of the prohibition against anti-competitive agreements in Section 10 of Competition Act. The preliminary calculation of fines set out in the 2020 Statement of Objections was based on the premise that the agreement constituted a by object violation.

All three parties have submitted extensive replies to the Competition Authority’s 2020 Statement of Objections, and the Authority is continuing its assessment of the factual, legal and economic issues pertaining to the case.

In January of this year, the Competition Authority informed the three parties that the Authority had decided to close the part of the case that related to a possible restriction of competition by object. At the same time, the parties were informed that the Authority has not completed its assessments of whether the agreement at issue has restricted competition by effect.

The Competition Authority has today informed the parties of its new preliminary calculation of fines in this case. The Authority is considering imposing a fine of 1.3 billion NOK on COOP, a fine of 2.3 billion NOK on Norgesgruppen and a fine of 1.3 billion NOK on Rema.

– The Competition Authority considers that the previously announced preliminary fines should be reduced, partly because the case is no longer being investigated as a so-called by object violation of the Competition Act. At the same time, the assessment of a possible restriction of competition by effect continues. The size of the preliminary fines announced today demonstrates the seriousness of the case. The handling of this case is of the highest priority to the Authority, says Director General Tina Søreide.

The Competition Authority emphasizes that the assessments in the new Statement of Objections are preliminary, and that no final decision has been adopted in the case. The Parties have been given a deadline until 2 May to submit their views on the new Statement of Objections.