LUSA 04/25/2025

Lusa - Business News - Portugal: Competition Authority accuses tourism association of price fixing

Lisbon, Apr. 24, 2025 (Lusa) - Portugal's Competition Authority (AdC) has accused an association of tourism companies of price fixing in the sector, concluding that the entity had adopted conduct that restricts competition since at least 2020, according to a statement released on Thursday.

The AdC said it had thus launched "an investigation into an association of companies for fixing minimum prices in the tourism sector, which resulted in the issuance of a notice of offence (accusation) against it," without identifying the target. 

In June last year, it went on, "the AdC ordered the opening of the investigation, which resulted in indications that the association of companies targeted in the case had fixed the minimum prices to be charged by its members and other service providers, by recommending prices contained in fee schedules shared by the target, as well as by determining minimum percentage price increases to be practised in the sector in question."

In the course of its investigation, the authority found that "the aforementioned business association has adopted the competition-restricting behaviour in question since at least 2020."

As a result, the AdC said, it had "issued a notice of illegality addressed to the business association in question, which determines the closure of the enquiry phase and initiates the investigation phase of the case."

The authority explained that the "behaviour in question is the fixing - by an association of companies, aimed at companies in the sector it seeks to represent (its members and others) - of the minimum prices that can be charged as fees for the provision of tourist services in part of Portugal."

The AdC emphasised that "business associations must refrain from fixing the prices charged for the provision of services in the sector they represent, as this constitutes a practice that is contrary to competition rules and harmful to consumers."

According to competition rules, "companies must be autonomous in setting prices and other commercial conditions for products sold or services provided," it recalled, stressing that "violating competition rules not only reduces consumer welfare, but also harms the competitiveness of companies, penalising the economy."

It added that "in the investigation phase, which has now begun, the association of companies concerned - which benefits from the presumption of innocence - is given the opportunity to exercise its right to a hearing and defence in relation to the behaviour investigated by the AdC, the evidence gathered and the sanction or sanctions it may incur," and at the end of this phase, the authority will adopt a final decision.

 

ALN/ARO // ARO.

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