In a significant ruling (14 November), Lithuania’s Competition Council has fined Giantera and 19 distributors €1,415,520 for participating in a price-fixing agreement that kept prices high on food supplements and cosmetics in Lithuania. The investigation revealed that Giantera, the official distributor of the “Dr. Ohhira” brand, coordinated with pharmacies, clinics, and other retailers to prevent discounts and promotions on their products from 2015 to 2022.
The agreement required distributors to strictly adhere to the prices set by Giantera, barring any independent price reductions or promotions. Giantera reportedly monitored compliance, threatening to halt supplies to those who deviated. Distributors, in turn, informed Giantera if they observed any pricing below the agreed-upon level.
Jolanta Ivanauskienė, Chairperson of the Competition Council, criticized the arrangement, noting that it stifled competition among retailers, restricted their ability to set prices, and ultimately harmed consumers by keeping prices artificially high. “The agreement on prices across the entire distribution network is a serious violation of competition rules,” Ivanauskienė stated, highlighting its adverse impact on consumer access to competitive pricing.
The fines were determined based on each company’s income and the severity and duration of the violation. Key penalties included €398,600 for Giantera, €187,720 for Bio Sala, and €100,950 for Films ir kvapais, with other distributors receiving smaller fines. However, some companies cooperated with the investigation, resulting in significant fine reductions. Entafarma and Mano Vaistinė’s joint penalty, for example, was lowered by 75% and then further reduced by 15%, bringing their total to €2,830. The EV group, including Azeta pharmacy and Euroapotheca, also received a 15% reduction, paying €532,080.
The Council dismissed charges against several other companies, including Atgijas Vaistinė and Soderma, due to insufficient evidence. The fined companies have one month to appeal the decision in Lithuania’s Administrative Court of Regions.
