The Spanish High Court has reduced the fine of nearly 1
million euros imposed on Bodegas Barbadillo by the Comision Nacional de Competencia
(Office of Fair Trading) to 250,000 euros. This is the latest in a series of dramatic
reductions by the Court of fines imposed by the body on bodegas for alleged
price fixing on own label wines for export.
Nine bodegas, Fedejerez and the Consejo were together originally
fined a total of 6.7 million. Some growers’ organisations were also implicated
for agreeing grape prices, and fined 0.9 million. The court agrees there was an
infraction (debatable), but considers the fines excessive, if legal.
A competition law expert says that neither the Comision nor
the Court really understand how the wine trade works. The whole business was
sparked by Nueva Rumasa denouncing the approval of allegedly discriminatory
sales quotas. This led to a large scale investigation into trading practices. Barbadillo is considering whether to appeal.
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