Savory Snacks, Cheese puffs, Corn Snacks

Anti-competitive Agreements, Abuse of Dominant Position

Articles 1 & 2 L. 3959/2011 

Finding of infringement. Imposition of fine.

TSAKIRIS ABEE

TASTY FOODS S.A.

Following the complaint submitted by the company “TSAKIRIS ABEE” against the company “TASTY FOODS S.A.,” the Plenary Session of the Competition Commission, by its very important for the conditions of the specific relevant market decision (no. 520/VI/2011), unanimously accepted that the company TASTY FOODS, which is mainly active in the production and marketing of salty snacks, violated the provisions of articles 2 of former L. 703/1977, and 102 TFEU (abuse of dominant position), as well as of articles 1 of former L. 703/1977 and 101 TFEU (hardcore agreements) .

By this decision, the HCC imposed a fine totaling €16.177.514, for the infringements found.

According to the Commission’s Decision, the abusive conduct of TASTY FOODS involved multiple practices and methods, in the context of a single and long-term strategy of excluding its competitors, as well as limiting their potential for development in the very important distribution channel of small retail sale points (kiosks, ovens, grocery stores, etc.). To this end, the complainant used a variety of practices over a long period of time (extending from 2000 to at least 2008), which included:

• Wholesale and retail exclusivity agreements, namely exclusivity clauses and discounts to ensure wholesale exclusivity, as well as exclusivity clauses in the use of fixed assets (exposition ladders) and related practices, in order to occupy all, or almost all, of the available space at small retail sale points,
• Agreements with discounts on the commitment/allocation (of all or part of the available) space for the promotionof its own products on the shelves of the small retail sale points, foreclosingcompetitors,
• Agreements with targeted/individualizeddiscounts, both wholesale and retail, with which it bound its customers and limited their ability to switch to other suppliers, and
• Coordinated and targeted actions of replacement and disappearance from the market, with extreme and unorthodox methods, of the products and fixed assets (ladders) of its competitors.

ACAA 869/2013 & Council of State 532/2014