Home » Business » Indecopi opens proceedings against Wong, Metro, Plaza Vea, Vivanda, Tottus and Makro for price agreement on turkey | ECONOMY

Indecopi opens proceedings against Wong, Metro, Plaza Vea, Vivanda, Tottus and Makro for price agreement on turkey | ECONOMY

Indecopi, through the Technical Secretariat of the Commission for the Defense of Free Competition (CLC), initiated a sanctioning administrative procedure (PAS) against the companies Cencosud Retail Perú SA (owner of Wong and Metro), Makro Supermayorista SA (Makro ), Supermercados Peruanos SA (Plaza Vea y Vivanda) and Hipermercados Tottus SA (Tottus), because they allegedly agreed to set prices for the sale of whole turkey nationwide.

According to the first investigations Cencosud, Makro, Supermercados Peruanos and Tottus they would have set the sale price of the whole turkey of the San Fernando brand between 2009 and 2016; while Cencosud, Supermercados Peruanos and Tottus, would have incurred in the same anti-competitive practice in the commercialization of the whole turkey of the Redondos brand, between 2010 and 2015.

According to the evidence obtained by Indecopi consisting of emails and financial information, the alleged agreement was executed based on the establishment of a “suggested minimum retail price” by suppliers San Fernando and Redondos, in the year-end festivities campaigns, of the mentioned periods.

Cencosud, Makro, Supermercados Peruanos and Tottus have agreed to eliminate competition among themselves, avoiding setting prices below the “suggested minimum retail price” established by San Fernando.

In turn, Cencosud, Supermercados Peruanos and Tottus would have done the same to avoid setting prices below the “suggested minimum retail price” for Redondos.

-Participation of San Fernando and Redondos-

To achieve this alleged anti-competitive practice, the competing companies Cencosud, Makro, Supermercados Peruanos and Tottus would have had the participation of San Fernando and Redondos, resorting to these through claims or complaints, when one of the competitors established a price below the “suggested minimum retail price”.

In this way, San Fernando and Redondos would have fulfilled a role of facilitators of the agreement, having taken actions and getting Cencosud, Makro, Supermercados Peruanos and Tottus, to respect the “suggested minimum retail price.”

For having allegedly fulfilled the role of facilitators of the investigated practice, the PAS against San Fernando has also been initiated, for the years 2015 and 2016 and, Redondos, for the year 2015. This in accordance with the modification made in the Competition Law ( September 2015), which empowers the authority to investigate and sanction those economic agents who facilitate a cartel.

The initiation of an administrative sanctioning procedure – Indecopi remarks – is based on the existence of reasonable indications about the carrying out of an alleged anti-competitive conduct and does not constitute a prejudice on the result of the procedure or the responsibility of those investigated.

Although this product (whole turkey) is marketed throughout the year, its consumption is seasonal, since approximately 60% of the annual production is marketed in the month of December, in connection with the Christmas and New Year holidays. Sales have exceeded 2 million units in recent years.

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