Commission sends Statement of Objections to six companies in farmed Atlantic salmon cartel case

This article is brought to you in association with the European Commission.

The European Commission has informed Norwegian salmon producers Cermaq, Grieg Seafood, Bremnes, Lerøy, Mowi and SalMarof its preliminary view that they breached EU antitrust rules by colluding to distort competition in the market for spot sales of Norwegian farmed Atlantic salmon in the EU.

The Commission has concerns that, between 2011 and 2019, the six salmon producers, exchanged commercially sensitive information, relating to sales prices, available volumes, sales volumes, production volumes and production capacities, as well as other price-setting factors. The suspected aim of this alleged conduct was to reduce normal uncertainty in the market for spot sales of Norwegian farmed Atlantic salmon into the EU.

The alleged anticompetitive conduct only concerns sales on the spot market into the EU, as opposed to sales based on long-term contracts. Spot sales are those for which prices, volumes and other sales conditions are agreed per sale, based on the market conditions on the day of the sale.

Norway accounts for over half of the production of farmed Atlantic salmon worldwide and the EU is its main importer. The alleged conduct concerns sales of fresh, whole and gutted Atlantic salmon farmed in Norway, which accounts for nearly 80% of all farmed Atlantic salmon exported from Norway. The alleged conduct does not concern frozen farmed Atlantic salmon or processed products such as salmon fillets, loins, or smoked salmon.

If the Commission’s preliminary view is confirmed, this conduct would infringe Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’), which prohibits cartels and other restrictive business practices.

The sending of a Statement of Objections does not prejudge the outcome of an investigation.

Background on procedure

Through information received from several market players, the Commission identified concerns in the market for spot sales of Norwegian farmed Atlantic salmon in the EU and it carried out inspections in February 2019 as part of a so-called ‘ex-officio’ investigation.  

A Statement of Objections is a formal step in the Commission’s investigations into suspected violations of EU antitrust rules. The Commission informs the parties concerned in writing of the objections raised against them. The parties can then examine the documents in the Commission’s investigation file, reply in writing and request an oral hearing to present their views on the case before representatives of the Commission and national competition authorities.

If the Commission concludes, after the parties have exercised their rights of defence, that there is sufficient evidence of an infringement, it can adopt a decision prohibiting the conduct and imposing a fine of up to 10% of a company’s annual worldwide turnover.

There is no legal deadline for the Commission to complete antitrust inquiries into anticompetitive conduct. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the companies concerned cooperate with the Commission and the exercise of the rights of defence.

The Commission has carried out a series of major investigations into cartels in the agri-food sector. The Commission has already fined suppliers of bananas, exotic fruit, canned mushrooms, and canned vegetables.

For more information

More information will be made available under the case number AT.40606 in the public case register on the Commission’s competition website.

For more information on the Commission’s actions against cartels, including on how individuals or companies can report suspicious cartel behaviour see the Commission’s dedicated cartels website. A periodic compilation of antitrust and cartel news is available in the Competition Weekly News Summary and statistics on cartel enforcement.

Quote(s)

Competition is essential to ensure that consumers have access to food at affordable prices. We are concerned that six salmon producers exchanged commercially sensitive information with the aim to limit competition on the market, to the detriment of European customers. The companies concerned now have the possibility to respond to our concerns.

Margrethe Vestager, Executive Vice-President in charge of competition policy