Romania fines 21 agricultural firms $17.5 million for price-fixing on seeds and crop protection products

Romania's Competition Council has imposed fines totaling 83.2 million lei (approximately $17.5 million USD) on 21 companies operating in the agricultural sector. The sanctions target alleged anti-competitive practices related to the pricing of crop seeds and plant protection products.

The investigation revealed that several producers and distributors, including Pioneer Hi-Bred România, Corteva Crop Solutions România (formerly DuPont România), and Maisadour Semences România, engaged in agreements to control resale prices. These agreements were allegedly implemented through contractual provisions and a voucher system, which restricted distributors' ability to independently determine the final prices offered to farmers.

One key mechanism examined by the council involved vouchers provided directly to farmers. While farmers could choose their distributor, the final price paid, even with a voucher, was reportedly pre-determined by agreements between the producer and distributor. This system allowed producers to influence market prices and ensured more predictable sales for distributors, sometimes with additional discounts for participation.

Bogdan Chirițoiu, president of the Competition Council, stated, "The price recommended by the producer should not, in practice, become a fixed price, meaning mandatory." The largest individual fine, 17.9 million lei, was levied against Agrii. The council indicated that producers were found to be more involved in initiating these price-fixing schemes.

“

The price recommended by the producer should not, in practice, become a fixed price, meaning mandatory.