Due to this, the AdC has launched “an investigation into an association of companies for setting minimum prices in the tourism sector, which resulted in the issuance of a note of illegality (accusation) against it”, it stated, without identifying the business in question.

In June of last year, “AdC ordered the opening of an investigation, which resulted in evidence that the association of companies targeted in the process had set the minimum prices to be charged by its members and other service providers, by recommending prices contained in fee tables shared by the target, as well as by determining minimum percentages of price increases to be practiced in the sector in question”.

During the investigation it launched, the AdC found that “the aforementioned business association adopted the restrictive competition conduct in question since at least 2020”.

Thus, the AdC “issued a note of illegality addressed to the targeted association of companies, which determines the closure of the investigation phase and begins the investigation phase of the process”.

The Competition Authority explained that the “behaviour in question is reflected in 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”.

AdC highlighted that “business associations must refrain from setting prices charged for the provision of services in the sector they represent, as this constitutes a practice that is contrary to competition rules and harmful to consumers.”

According to competition rules, “companies must be autonomous in setting prices and other commercial conditions for products sold or services provided”, highlighting that “violation of competition rules not only reduces consumer well-being, but also harms the competitiveness of companies, penalising the economy”.

According to the Competition Authority, “in the investigation phase, which has now begun, the targeted business association – which benefits from the presumption of innocence – is given the opportunity to exercise the right to be heard and defend itself in relation to the behaviours investigated by the Competition Authority, the evidence gathered and the sanction or sanctions that it may incur”, and once this phase is completed, the entity adopts a final decision.