Spain: CNMC sets fines over fine wine cartel

Spanish regulator CNMC has fined Bodegas José Estévez SA with 1.7 million euros following confirmation of their participation in price-fixing cartel affecting fine wines from the city of Jerez.

The agreements between providers in the cartel involving Bodegas José Estévez included quotas and limits on exportation for each participant, the implementation of a compensation scheme and price fixing through minimum price-setting for customer discounts, as well as exchanging sensitive information for the purpose of manipulating prices.

The cartel was able to manipulate prices and avoid competitive pressure due to their effective control over 90% of exports. The arrangements implied an artificial rise in prices, with direct impact on consumers.

On July 2008 the Vino Jerez case was filed against José Estévez SA over their participation in a fine wine cartel involving the same sector. The violations detected may have started back in 2001, mostly affecting the export of fine wines out of Jerez.

Full Content: CNMC

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