The Belgian Competition Authority has issued a statement of objections to Raffinerie Tirlemontoise NV and its parent company, Südzucker AG, in connection with a suspected abuse of economic dependence in the sugar sector.
According to the authority, the objections relate to a possible infringement of Article IV.2/1 of the Belgian Code of Economic Law, which prohibits the abuse of a position of economic dependence. Such an abuse may arise where a company uses its market position to impose unfair trading conditions on partners that lack reasonable equivalent alternatives, with the potential effect of distorting competition on the Belgian market.
The practices under investigation concern the contractual and commercial conditions applied to sugar beet growers supplying Raffinerie Tirlemontoise. The authority alleges that these conditions placed growers in a state of general uncertainty, particularly regarding their expected revenues, unduly restricted their autonomy in managing their agricultural and commercial activities, and shifted a disproportionate share of commercial risk onto them within the sugar supply chain.
In its statement of objections, the Belgian Competition Authority preliminarily considers that the affected sugar beet growers are in a situation of economic dependence vis-à-vis Raffinerie Tirlemontoise. It further alleges that the practices in question constitute an abuse of that dependence and have the effect of distorting competition, notably in the procurement of sugar beet.
The authority emphasised that the issuance of a statement of objections does not prejudge the final outcome of the proceedings. Raffinerie Tirlemontoise and Südzucker are now entitled to exercise their rights of defence, including access to the investigation file, in order to respond to the allegations.