Press Release 01/2024January 10, 2024The investigationThe Portuguese Competition Authority (AdC) is currently investigating a sales restriction imposed by one of the leading trader companies of Enterprise Application Software ("EAS") on its distributors. This restriction aims to limit the distribution and market share of this product and its associated services.The AdC initiated the investigation in November 2022, discovering signs that the concerned company had prohibited its distributors from submitting bids in both public and private procurement procedures from at least 2015 to 2022.On December 28, 2023, the AdC issued a Statement of Objections to the company responsible for the practice and its parent company. Simultaneously, the AdC closed the case against the distributors, concluding the initial investigation phase and shifting into the next phase of the case.The Statement of ObjectionsWhen the AdC believes, based on the investigation, that there's a reasonable possibility of reaching a final decision declaring an infringement, it issues a Statement of Objections. In the ongoing investigation phase, the accused companies - benefiting from the presumption of innocence - are granted the opportunity to be heard and defend themselves concerning the investigated behavior, the gathered evidence, and any potential sanctions.Following the conclusion of this phase and thorough consideration of all available elements, the AdC will make a final decision.The Investigated PracticeThe company responsible for the sales restriction limited product distribution and segmented the market, preventing its distributors from participating in public and private procurement procedures. When a supplier employs a distribution system that qualifies specific distributors to resell its products (selective distribution), it must refrain from interfering with their commercial autonomy. Such interference contradicts the Competition Law and is detrimental to consumers. Violating competition rules not only diminishes consumer welfare but also undermines company competitiveness and the economy.

Portuguese Competition Authority Investigates Sales Restrictions by Business Application Software Trader

The Portuguese Competition Authority (AdC) is investigating a leading trader of Enterprise Application Software for imposing sales restrictions on its distributors, preventing them from participating in public and private procurement procedures. The AdC issued a Statement of Objections to the company responsible for the practice and its parent company, while closing the case against the distributors. The investigation aims to determine if the sales restrictions violate competition law and harm consumer welfare and company competitiveness.

AdC investigates sales restrictions practiced by a trader of Business Application Software
AdC investigates sales restrictions practiced by a trader of Business Application Software

Portuguese Competition Authority Investigates Sales Restrictions by Business Application Software Trader

The Portuguese Competition Authority is investigating a leading trader of Enterprise Application Software for imposing sales restrictions on its distributors, limiting distribution and market share.