The Portuguese Competition Authority (AdC) has charged a business association in the tourism sector with anti-competitive practices after uncovering evidence of minimum price-setting among its members and other service providers.
According to an announcement made today, the AdC launched its investigation in June 2024, which revealed that the association had shared fee schedules and set minimum price increases, limiting competition across part of the national territory. The authority found that the conduct had been ongoing since at least 2020.
Following its findings, the AdC issued a Notice of Unlawfulness, formally closing the preliminary inquiry and advancing to a full investigation phase under case number PRC/2024/4. The case is public, in line with Article 32 of Portugal’s Competition Law.
Tourism Sector Performance in 2024
Tourism continues to affirm its role as one of the main pillars of the Portuguese economy, driving not only economic growth but also contributing to the development of territories and local communities. Provisional figures for 2024 highlight this momentum, with the sector achieving record performances across all key indicators. Over the course of the year, the tourism sector recorded a 4.0% increase in overnight stays, a 5.2% rise in the number of guests, and an 8.8% growth in tourism revenue, further reinforcing Portugal’s standing as a competitive and attractive destination on the international stage.
In total, Portugal welcomed 31.6 million guests in 2024, of which 19.4 million were foreign visitors, representing year-on-year increases of 5.2% and 6.3%, respectively, compared to 2023.In 2024, Portugal’s tourism sector generated approximately €27 billion in revenue.
Right to Defense Ensured
The business association, which benefits from the presumption of innocence, will now have the opportunity to respond to the charges, present its defense, and contest the evidence and any proposed sanctions. This step, known as the investigation phase, could culminate in a final decision by the AdC determining whether an infringement occurred.
Issuing a Notice of Unlawfulness signals that the AdC sees a reasonable possibility that the proceedings may result in a finding of infringement.
The AdC sets the amount of fines based on several factors, including the seriousness and impact of the infringement, the size and nature of the affected market, the duration of the misconduct, the degree of involvement, and any economic advantages gained. It also considers the company’s efforts to eliminate prohibited practices, its financial situation, any past violations, and its cooperation with the AdC. Fines cannot exceed 10% of the company’s turnover or, for individuals, 10% of their annual income from the business involved.
Impact of Price-Fixing
The AdC stressed that business associations must not set prices for the sectors they represent, as doing so violates competition rules, harms consumers, and undermines the autonomy and competitiveness of businesses.
Under competition law, companies must independently determine the prices and commercial conditions of their goods and services. Price-fixing distorts the market, leading to higher prices for consumers and weakening the economy’s overall competitiveness.
To promote compliance, the AdC has published a Guide for Business Associations, offering practical advice on behaviors to avoid and underscoring the benefits of fostering competitive markets.
Part of a Broader Strategy
This investigation is part of a broader effort by the AdC to detect and sanction anti-competitive practices at the regional level. It also supports the authority’s ongoing outreach campaign, “20 years, 20 cities – Competition Comes to You,” aimed at increasing awareness among businesses, public bodies, and consumers across the country.
The AdC’s announcement signals a continued focus on ensuring that all sectors of the economy, including tourism, operate under fair and competitive conditions.
