The Portuguese Competition Authority (AdC) has sanctioned a company for abusing its dominant position in the market for the collection, distribution, and commercialisation of Madeira bananas. The undertaking cooperated with the AdC under a settlement procedure, waiving its right to contest the infringement, ceasing the conduct, and beginning the voluntary payment of the fine.
On 7 August 2024, the AdC issued a recommendation to the Autonomous Region of Madeira (RAM) proposing measures to remove legal barriers to entry and increase the diversity of companies in the Madeira banana sector, particularly in commercialisation. The goal was to enhance market contestability, potentially influencing pricing, product quality, variety, and incentives for efficiency and innovation.
© AdC
Following this recommendation and the AdC's ongoing market monitoring, behaviours likely to constitute anticompetitive practices were identified. The conduct involved requiring Madeira banana producers to sign exclusivity declarations, infringing Article 11 of the Portuguese Competition Act and Article 102 of the Treaty on the Functioning of the European Union (TFEU). These practices have been taking place since at least January 2025.
According to the AdC, these behaviours distort the competitive process by imposing conditions on producers that maintain the undertaking's dominant position in the market, hindering effective competition. The Portuguese Competition Act prohibits "the abusive exploitation, by one or more undertakings, of a dominant position in the national market or a substantial part of it."
The fine imposed was reduced to reflect the company's participation in the settlement procedure and its cooperative stance throughout the proceedings.
The settlement procedure is intended to create procedural efficiencies while ensuring that undertakings involved in competition infringements are sanctioned. In July 2024, the AdC adopted rules governing settlement proceedings, outlining the procedures followed by the Authority in this context and aiming to foster cooperation between the AdC and the parties concerned.
© AdCFor more information:
AdC - Portuguese Competition Authority
Ref no: PRC/2025/6)
Tel: +351 217 902 000
Email: [email protected]
www.concorrencia.pt