The Portuguese competition authority, known as AdC, has imposed a fine on a company for abusing its dominant position in the collection, distribution, and commercialization of Madeira bananas. The company actively cooperated with the AdC during the settlement procedure, waiving its right to contest the infringement, ceasing the anticompetitive conduct, and beginning the voluntary payment of the fine.

On August 7, 2024, the AdC had previously issued a recommendation to the Autonomous Region of Madeira, suggesting measures to eliminate legal barriers to entry and enhance the diversity of companies in the Madeira banana sector. This initiative aimed to improve market contestability, which would positively impact pricing, product quality, and innovation incentives. Following this recommendation, the AdC identified behaviors that likely constituted anticompetitive practices.

The specific conduct that led to the fine involved the company requiring banana producers to sign exclusivity declarations, which violated Article 11 of the Portuguese Competition Act and Article 102 of the Treaty on the Functioning of the European Union (TFEU). The AdC determined that these practices distorted competition by imposing conditions that helped maintain the company's dominant market position, thereby hindering effective competition.

The fine was reduced due to the company's participation in the settlement procedure, which allows for procedural efficiencies while ensuring that companies involved in competition infringements are appropriately sanctioned. In July 2024, the AdC established rules for settlement proceedings to promote better cooperation between the authority and the involved parties.