February 2, 2024

 

Major salmon producers in Norway to be investigated for price fixing

 

 

The European Commission has informed six of the largest Norwegian salmon producers it is advancing an investigation into price fixing in the spot market.

 

The commission alleges Mowi, Cermaq, Grieg, Bremnes, Lerøy and SalMar breached EU antitrust rules by colluding to distort competition in the market for spot sales of Norwegian-farmed Atlantic salmon in the European Union between 2011 and 2019, including exchanging commercially sensitive information. It said it acted after receiving information from several market players about alleged illegal conduct.

 

"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," it said. "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 investigation began in February 2019 and included raids of company facilities in several EU countries. Since then, the EU has not issued any update on the investigation's status, even as the US Department of Justice opened and then closed its own investigation and as several class-action lawsuits were filed and settled.

 

"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 defense," the commission said, stating that subsequent statement of objections "does not prejudge the outcome of an investigation."

 

Once the commission concludes there is sufficient evidence of an infringement, it can move to prohibit this type of conduct in the future and impose a fine of up to 10% of a company's annual global sales.

 

EC Executive Vice President for A Europe Fit for the Digital Age programme Margrethe Vestager said in a statement 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, according to the commission. If true, such behavior would be an infringement of Article 101 of the Treaty on the Functioning of the European Union, which prohibits cartels and other restrictive business practices.

 

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

 

"We are concerned that six salmon producers exchanged commercially sensitive information with the aim to limit competition on the market." Vestager added.

 

All companies named in the statement of objections denied engaging in any illegal behavior regarding the manipulation of spot salmon prices.

- SeafoodSource