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Vila pays fine in settlement for resale price maintenance

31. oktober 2013

On October 30, 2013, Vila entered into a settlement with the Danish Competition and Consumer Authority for infringing section 6 of the Dan-ish Competition Act by imposing resale price maintenance to some of the company’s dealers. Accordingly Vila accepted to pay a fine of DKK 1.6 million (€ 213.333). Two persons from the management each accepted to pay fines of DKK 22.000 (€ 2.933).

For a period of not less than 2 ½ year up until October 2012, Vila de-manded that some of its dealers followed the company’s suggested retail prices as a minimum resale price to consumers. The two persons from the management were aware of this illegal business practice but failed to stop it. One of the two persons even performed actions that led to the entering into agreements concerning resale price maintenance.

In fixing the fines the Danish Competition and Consumer Authority took into account the gravity of the infringement. In fixing the fine to the company the Authority also took into account the size of the company’s turnover and the duration of the infringement.

The Danish Competition and Consumer Authority emphasized that it was a mitigating circumstance that the company and the two persons from the management cooperated with the Competition and Consumer Authority on the decision of the case.

The Danish Competition and Consumer Authority took up the case on the basis of a TV program that indicated that Vila imposed resale price maintenance to some of the company’s dealers. Accordingly the Authority conducted a dawn raid and found evidence showing that the indication was right. When the Authority submitted the evidence found on the dawn raid to Vila, the company chose to cooperate on the decision of the case.