In a recent decision, the Norwegian Competition Authority (Konkurransetilsynet), it established that found that some supermarket undertakings in Norway had, by effect, used shared price information to test competitors’ willingness to participate in price increases. This thereby facilitated price hikes with minimal risk, which amounts to anticompetitive conduct.
The Authority imposed fines totalling 4.9 billion NOK (approximately €420m) on three major grocery chains — Coop, Norgesgruppen, and Rema — for violating the Norwegian Competition Act.
Background
The history of this cases dates back to 2007 when ACNielsen Norge AS discontinued weekly price reporting to the chains after the Norwegian Competition Authority (‘the Authority’) highlighted the potential harm to competition by this practice. Despite this, some supermarket chains continued to expand their price surveillance activities.
In 2010, some supermarket undertaking entered into an ‘Industry Standard for Comparative Advertising’ arrangement, which allowed for price comparisons based on documented data. However, this standard was later exploited to facilitate extensive price information sharing.
One year later, some supermarket chains had agreed to use hand scanners to collect large quantities of price data from each other’s stores, and thereafter, they further expanded access for price hunters.
By 2016, the Authority aimed to investigate information sharing between the supermarket undertaking. Following this, the Authority made unannounced inspections at the three supermarket undertakings in April 2018. Through these ‘dawn raids’, the Authority uncovered documents leading to furthering its investigation.
Statement of Objections by the Authority
The Authority’s Statement of Objections in December 2020 indicated that some supermarket chains engaged anticompetitive conduct, both by effect and by object.
Although the investigation into the anticompetitive object was discontinued in January 2024, the focus remained on the anticompetitive effect. A supplementary Statement of Objections with adjusted fines was issued in April 2024, and the final fines were imposed in August 2024.
Decision of the Authority
The Authority’s decision stated that the cooperation between the supermarkets undertaking made it more attractive for them to increase prices, and less attractive to reduce them, as competitors were expected to follow price changes quickly.
This rapid response to price changes undermined incentives to compete by lowering prices, ultimately harming competition.
Law
The case concerns violations of Section 10 of the Norwegian Competition Act.
Fines
Given that the anticompetitive conduct lasted from January 2011 until at least April 2018, the fines imposed were as follow:
- 2.3 billion BOK on Norgesgruppen.
- 1.3 billion NOK on Coop.
- 1.3 bn NOK on Rema.
In addition to the fines, the supermarket undertaking would be required to cease the unlawful cooperation and any similar practices.
Potential appeal
Appeals against decisions of the Authority can be brought to the Norwegian Competition Appeals Board (Konkurranseklagenemnda). From the date of the decision, the supermarket undertakings have six months to lodge their case.
Thus far, there is no publicly available information as to whether any of the supermarket undertakings will do so.
Activity in other EEA states
One law firm has stated that given that Norwegian rules in the area are very similar to the Danish ones, it is possible that a similar case could therefore arise in Denmark.
More on the decision of the Authority
The announcement by the Norwegian Competition Authority of its decision can be read here.