Antitrust: Competition Authority Sanctions Wheat Flour Cartel
Through Resolution 332/2022, of April 1, 2022 -published today in the Official Gazette-, the Secretary of Internal Trade (SCI), following CNDC’s Opinion IF-2022-26154360-APN-CNDC# MDP dated March 18, 2022, resolved “to declare responsible the firm MOLINO CAÑUELAS S.A.C.I.F.I.A., the FEDERACIÓN ARGENTINA DE LA INDUSTRIA MOLINERA, CÁMARA DE INDUSTRIALES MOLINEROS and ASOCIACIÓN PEQUEÑAS Y MEDIANAS INDUSTRIAS MOLINERAS DE LA REPÚBLICA ARGENTINA, for executing a concerted horizontal practice of setting minimum prices and exchanging sensitive information in the wheat milling market and the marketing of wheat flour throughout the national territory, affecting the general economic interest, violating the provisions of Section 1 of Law No. 27,442, specifically subsections a) of Section 2 and a) of Section 3 of said regulatory plexus.”
Consequently, the SCI resolved:
(i) Impose (i) on the firm MOLINO CAÑUELAS S.A.C.I.F.I.A., a fine in the amount of AR$150,000,000; (ii) to the FEDERACIÓN ARGENTINA DE LA INDUSTRIA MOLINERA, a fine in the amount of $150,000,000; (iii) to the CÁMARA DE INDUSTRIALES MOLINEROS a fine in the amount of $93,974,602; and (iv) the ASOCIACIÓN PEQUEÑAS Y MEDIANAS INDUSTRIAS MOLINERAS DE LA REPÚBLICA ARGENTINA, a fine in the amount of $51,131,995; in accordance with the provisions of Section 46 of Law 25,156;
(ii) Order said entities to cease and refrain from entering into price-fixing agreements and exchanging sensitive information in the wheat milling market and the marketing of wheat flour; Y
(iii) Order the FEDERACIÓN ARGENTINA DE LA INDUSTRIA MOLINERA, the CÁMARA DE INDUSTRIALES MOLINEROS and the ASOCIACIÓN PEQUEÑAS Y MEDIANAS INDUSTRIAS MOLINERAS DE LA REPÚBLICA ARGENTINA to publish the «Guide on Defense of Competition for Business Associations and Chambers and Professional Associations and Associations ” published on the website of the NATIONAL COMMISSION FOR THE DEFENSE OF COMPETITION in their respective web domains or in the one they use from time to time.
Among the recitals of Resolution 332/2022, it is highlighted that:
(A) Due to the analysis carried out by the CNDC, it was concluded that the GENERAL AGREEMENT FOR THE DEFENSE OF FREE COMPETITION IN THE MILLING SECTOR (document that was denounced by the firm IMPULSAR (INDUSTRIAS MEDIANAS Y PEQUEÑAS UNIDAS LOCALES SOCIEDAD ARGENTINA) in its complaint to the CNDC dated April 4, 2017): “(i) it was conceived, designed, implemented and monitored by the milling entities, the FEDERACIÓN ARGENTINA DE LA INDUSTRIA MOLINERA, the CÁMARA DE INDUSTRIALES MOLINEROS and the ASOCIACIÓN PEQUEÑAS Y MEDIANAS INDUSTRIAS MOLINERAS DE LA REPÚBLICA ARGENTINA and the firm MOLINO CAÑUELAS S.A.C.I.F.I.A.; (ii) was signed by at least ONE HUNDRED SEVEN (107) milling companies on August 13, 2015 at the SHERATON HOTEL; (iii) had an auditing system in place to monitor compliance; (iv) established a system of sanctions for non-compliance; and (v) the expected reference cost was calculated at the request of the FEDERACIÓN ARGENTINA DE LA INDUSTRIA MOLINERA, through the signing of an agreement with a university institution”; and
(B) Said GENERAL AGREEMENT FOR THE DEFENSE OF FREE COMPETITION IN THE MILLING SECTOR sets up a horizontal collusive practice between the defendants, for setting minimum sales prices and exchanging sensitive information, in order to limit competition between milling companies in the wheat milling market and the commercialization of wheat flour throughout the national territory, being detrimental to free competition and the general economic interest.
Private Enforcement – Damages: It is important to highlight, that in accordance with Section 62 of Law 27,442, «individuals or legal entities affected by acts prohibited by this law, may bring an action for reparation of damages in accordance with the norms of civil law, before the competent judge in that matter.»
Source: https://www.boletinoficial.gob.ar/detalleAviso/primera/260423/20220405