Moldova's competition body Consiliul Concurentei announced fines with a total value of MDL 480 million (EUR 25 million) decided in the case of six fuel retailers found to have coordinated the prices charged on the local car fuel retail market during the period investigated (March 2019 to January 2021).

The decision can be appealed within 30 days.

The largest fines were decided in the cases of the major retailers Rompetrol (EUR 10 mln), Lukoil (EUR 9.4 mln), and OMV Petrom (EUR 4 mln). Independent retailers Bemol (EUR 1.5 mln), Tirex (EUR 80,000), and Datorio (EUR 50,000) were also fined.

The six companies have denied any agreement and claimed their decisions were purely based on commercial strategy.

The competition body, however, concluded that "such conduct would have been impossible in the absence of an understanding between the competitors."

The decision is somehow surprising, given that the car fuel prices are regulated in Moldova. Retail fuel prices in the Republic of Moldova are rather strictly controlled by the energy market regulator (ANRE), which sets maximum prices and maximum markups.

On July 1, for instance, ANRE set the maximal prices at MDL 25 per litre for petrol and MDL 21.77 per litre for diesel while at the same time hiking the markup allowed at 3.5%.

"ANRE continues to closely follow the developments at the international oil exchanges and assures consumers of the correctness of the daily calculation of the prices set for fuel," the agency commented.

In a press release quoted by NewsMaker, OMV Petrom stated that it disagrees with the Competition Council's conclusions and intends to appeal the fine in court. In addition, the company questioned the economic feasibility of doing business in Moldova.

The company stated that it strictly complies with legal requirements in the field of competition. 

"The company categorically rejects the conclusions of the antimonopoly authority and will apply to the competent court to protect its rights. For 20 years, Petrom Moldova has acted in good faith and has proven itself to be a reliable partner," the company said in a statement. It also called the fine "unreasonable." 

"In the conditions of a regulated market, the imposition of an unjustified and disproportionate fine calls into question the economic feasibility of doing business on the Moldovan market," the company warned.

iulian@romania-insider.com

(Photo source: Competition.md)