Portugal’s Competition Authority Accuses Tourism Association of Price Fixing

The Portuguese Competition Authority (AdC) has formally accused a tourism industry association of engaging in price-fixing practices, a move that, according to a statement, signals serious concerns over anti-competitive behavior dating back to at least 2020.

Per a statement from the AdC, an investigation was launched in June of last year after suspicions emerged regarding price coordination among tourism service providers. The inquiry revealed evidence suggesting that the association in question had been recommending fee schedules and imposing minimum pricing structures on its members and other providers in the sector.

According to a statement from the authority, the conduct involved “the setting – by an association of companies, aimed at companies in the sector that it aims to represent (its members, and others) – of minimum prices that can be charged as fees for the provision of tourist services in part of Portuguese territory.” Although the AdC has refrained from publicly identifying the association, it confirmed that the actions prompted the issuance of a formal note of illegality, marking the transition from investigation to proceedings.

The AdC emphasized that trade associations must avoid interfering with the pricing strategies of their members, noting that such practices are harmful to competition and consumer interests. As outlined in the statement, competition rules require that “companies must be autonomous in setting prices and other commercial conditions for products sold or services provided,” warning that violations can diminish consumer welfare and undermine broader economic competitiveness.

The investigation’s next phase will allow the implicated association to respond to the allegations, exercise its right to be heard, and present a defense, per the AdC’s statement. The entity stressed that the association currently enjoys the presumption of innocence until the investigation concludes and a final decision is issued.

Source: The Portugal News