The Belgian Competition Authority (BCA) has officially accepted binding commitments from Belgapom, the trade association representing Belgian potato processors and traders, in relation to the Belgapom quotation, which serves as a price index for potatoes. This decision comes as the BCA concludes its investigation into the pricing mechanisms employed by Belgapom.

The Belgapom quotation is determined weekly by a Pricing Committee, reflecting the most common purchase prices for specific potato varieties used in processing. The BCA's investigation focused on the methodology and rules governing this Pricing Committee, particularly the potential for anti-competitive practices arising from the systematic exchange of information among competing purchasers.

While the BCA recognized that price indexes like the Belgapom quotation can mitigate price volatility and enhance market transparency, it also expressed concerns about the risk of coordinated pricing strategies among committee members, which could adversely affect potato growers. The BCA emphasized the need for compliance with both Belgian and European competition laws.

In response to the BCA's concerns, Belgapom proposed commitments aimed at ensuring the quotation accurately reflects market transactions without facilitating price alignment among members. These commitments include the establishment of an objective methodology and the implementation of a digital platform to anonymize data exchanges among Pricing Committee members. Additionally, the commitments focus on enhancing the aggregated nature of the pricing information shared to minimize the risk of collusion.

The BCA has deemed these commitments sufficient to address its concerns and has made them binding, ensuring compliance through internal control mechanisms and reporting obligations to the BCA. The decision will soon be published on the BCA's website.