The Portuguese Competition Authority (AdC) has fined an HVAC systems and equipment supplier for establishing a vertical agreement with dealers regarding after-sales technical support services. The company not only set prices for these services but also imposed geographic restrictions on their provision.

The company cooperated with the AdC, admitted to the allegations, ceased the anti-competitive practice, and voluntarily paid a fine of 103,000 euros through a settlement procedure. The supplier offers products like domestic boilers, air conditioners, radiators, and electric water heaters.

The anti-competitive practice involved dividing the market among dealers for after-sales services and fixing prices for these services. Such agreements that distort competition by fixing prices or dividing markets are prohibited under competition law.

The fine imposed on the company was reduced by 30% due to its cooperation and agreement to the settlement procedure. This procedure aims to streamline processes while still penalizing companies for competition law violations. The AdC has recently established regulations for the settlement procedure to enhance cooperation between the authority and involved parties.