Refrigerated vehicle firms broke competition laws

SWEDEN: The Swedish Competition Authority has issued a fine of SEK7m (€590,000) after two temperature-controlled transport suppliers breached competition laws by dividing customers between themselves.

It is alleged that at the beginning of 2011, the two companies, Frigoscandia and the Norrmejerier Cooperative, concluded a collaboration agreement including an agreement to refrain from competing for one another’s customers. According to the agreement, which expired at the end of 2021, the companies would not work in parallel with the same customers nor cultivate relationships with one another’s existing customers. The result was that the two companies divided the market for temperature-controlled transport in northern Sweden between them.

The fine was levied on Norrmejerier Cooperative. Frigoscandia was granted immunity for reporting the breach to the Swedish Competition Authority in 2021.

“When companies restrict competition by dividing customers between them, they commit a serious breach of competition regulations that may result in high fines. Prohibited cooperation eliminates competition and presents a risk that prices will rise for customers,” commented Rikard Jermsten, director general of the Swedish Competition Authority.