Press Release 09/2024April, 18, 2024The DecisionThe AdC has fined the Portuguese Association of Companies in Condominium Management and Administration ("APEGAC") for setting minimum prices to be charged by companies providing management and administration services for residential condominiums in Portugal.The investigation conducted by the AdC showed that APEGAC regularly and widely fixed minimum prices to be charged as fees for the management and administration of condominiums over a period of approximately eight years (2015-2023), disclosing them to its member companies as well as other companies in the sector.In particular, APEGAC used the recent inflationary context in Portugal to justify the coordinated increase in the prices of these services, which are relevant to consumers in the context of housing costs.It should be noted that APEGAC is the most representative association in the sector, APEGAC is the most representative association in the sector, which, according to 2022 data, comprises more than 1,300 companies spread across the whole of Portugal.According to data published by Eurostat - 46.7 per cent of the Portuguese population lives in a regime of separate ownership in a building, thus, needing services of condominium management.Price fixing is one of the most serious violations of competition rules, directly harming consumers and the competitiveness of companies, penalizing the economy.



The ProcessThe AdC initiated the investigation in January 2023 after detecting, on APEGAC's website, a minimum price list to be applied in the condominium management and administration market.In February 2023, the AdC carried out unannounced inspections at the headquarters of the association of companies under investigation.On August 23, 2023, the AdC concluded, based on the investigation conducted, that there was a reasonable possibility of issuing a final decision declaring the existence of an infringement, thus adopting a Statement of Objections (accusation).APEGAC was given the opportunity to exercise its right to be heard and to defend itself against the behaviors investigated by AdC, the evidence gathered, and the sanction it could incur.Based on the investigation conducted and the defense presented by APEGAC, AdC now adopts a final sanctioning decision.The FineThe AdC has determined the imposition of a fine of €1,170,000.00 (one million one hundred and seventy thousand euros.The fines imposed by the AdC are determined − in the case of business associations − by the turnover generated in the market affected by the associated companies during the period in which the infringement persists. Additionally, according to the Competition Law, they cannot exceed 10% of the turnover generated in the year prior to the date of adoption of the final decision.When setting the fine, AdC takes into account the seriousness and duration of the infringement, the degree of participation of the targeted party in the infringement, the economic situation of the association of companies, among other circumstances, in accordance with international best practices (cf. AdC's Guidelines on the methodology for the imposition of fines).The sanctioning decisions of the AdC may be subject to appeal, although it does not have a suspensive effect on the execution of fines. Companies may request the Competition, Regulation, and Supervision Court to suspend the execution of decisions if (i) they demonstrate that they cause them considerable harm and (ii) they offer effective guarantee in their place.Decisions by business associationsImportant drivers of the Portuguese economy, business associations play a fundamental role in representing, defending, promoting, and supporting companies. Business associations are usually representative of a particular sector of activity or a geographical area, working to defend the common interests of companies.However, business associations cannot interfere with the commercial autonomy of their members, with decisions that may harm competition, such as setting prices, dividing markets, or defining relevant commercial conditions. Business associations must know that these practices are contrary to the Competition Law and that they end up distorting their mission, in addition to compromising market efficiency, the autonomy of economic agents, and the free play of competition.The AdC created and published in its webpage  the Guide for Business Associations [in Portuguese],  a document that aims to inform business associations and members about the decisions or behaviours to avoid, but also to champion the benefits of competition.

AdC Fines Business Association for Price Fixing in Condominium Management Market

The AdC fined APEGAC for setting minimum prices for management and administration services for residential condominiums in Portugal over an eight-year period. APEGAC justified price increases using the inflationary context in Portugal.

APEGAC, the most representative association in the sector with over 1,300 member companies, was found to have engaged in anti-competitive behavior that directly impacted consumers and market competitiveness.



AdC fines business association in the condominium management and administration market
AdC fines business association in the condominium management and administration market

AdC Fines Business Association for Price Fixing in Condominium Management Market

The Portuguese Competition Authority (AdC) has fined the Portuguese Association of Companies in Condominium Management and Administration (APEGAC) for setting minimum prices in the residential condominium management and administration sector, impacting consumers and market competitiveness.