The Portuguese Competition Authority (AdC) has issued (20 November) formal charges against a business association in the architectural and engineering consultancy sector for allegedly setting minimum fee schedules. This practice, which the AdC has identified as anticompetitive, has reportedly been in place since at least 1994.
Investigation Details
The AdC began its investigation in June 2024, uncovering evidence that the business association had drawn up, adopted, and disseminated minimum pricing tables to its members, which also influenced market-wide pricing. These fee schedules established baseline charges for services, serving as a reference for companies across the national territory.
The findings led the AdC to issue a Note of Illicitness on November 20, 2024, marking the conclusion of the investigation phase and the start of the procedural phase.
Next Steps in the Case
The Note of Illicitness indicates that the AdC believes there is sufficient evidence to reasonably conclude a violation of competition law. However, the business association retains its presumption of innocence and will now have the opportunity to respond, presenting its defense during the procedural phase.
Once the procedural phase concludes, the AdC will issue a final decision, determining whether an infringement occurred and, if so, the applicable penalties.
AntiCompetitive Concerns
The AdC emphasizes that business associations must refrain from setting prices, as such practices undermine competition rules and harm consumers by restricting price autonomy. Companies are required to independently determine pricing and other commercial conditions to foster competitive markets.
Price-setting practices like those identified not only diminish consumer welfare but also stifle economic competitiveness. The AdC has reiterated its commitment to addressing such violations and encourages compliance through resources such as its Guide for Business Associations, which outlines best practices and the benefits of competition.
