Hub-and-spoke saga to be continued - The first two ‘hub-and-spoke’ decisions

Aug 23, 2026

Competition authorities face complex evidentiary and legal challenges when investigating “hub-and-spoke” arrangements. The document explains how the AdC issued two decisions covering alcoholic and spirit beverages, outlining the role of a common “hub” supplier and multiple retail “spokes.” It summarizes the alleged concerted price conduct over extended periods, the market effects compared with traditional cartels, and the undertakings required to cease the practices, then discusses how fines pursue both punishment and deterrence.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

The first two ‘hub-and-spoke’ decisions

How does a ‘hub-and-spoke’ work?

Challenges to be faced by competition authorities

The fines

Competition December 23 2020 CONTENTS 1. The first two ‘hub-and-spoke’ decisions 2. How does a ‘hub-and-spoke’ work? 3. Challenges to be faced by competition authorities 4. The fines CONTACTS Cláudia Fernandes Martins [cmartins@macedovitorino.com](cmartins@macedovitorino.com) Simona Segundo [ssegundo@macedovitorino.com](ssegundo@macedovitorino.com) This information is provided for general purposes only and does not constitute professional advice. ‘Hub-and-spoke’ saga to be continued 1. The first two ‘hub-and-spoke’ decisions For the first time, the Portuguese Competition Authority (Autoridade da Concorrência – ‘AdC’) issued not one but two decisions on ‘hub-and-spoke’ arrangements in alcoholic and spirit beverages market imposing a total fine of circa €304 million – the largest fine ever imposed by AdC – against six large food retail chains. Both cases now fined are not the first ‘hub-and-spoke’ cases investigated by AdC. The large retail chains sector is a key-sector on the watchdog of AdC. During 2017, AdC carried out dawn-raids into the premises of 44 entities and from which would result the opening of 16 proceedings, mostly against large retail chains. Currently, investigations have led to seven statement of objections for “hub-and-spoke”arrangements, including the one issued a week ago. Last week, AdC had issued a statement of objections against three of the six large food retail chains now fined – Modelo Continente, Pingo Doce and Auchan – for another ‘hub-and-spoke’ arrangement in cosmetics and personal care products market. In the first decision, AdC considered that the six large food retail chains Modelo Continente, Pingo Doce, Auchan, Intermarché, Lidl and E. Leclerc (the spokes) used the commercial relationship with the supplier (the hub) Sociedade Central de Cervejas (‘SCC’)– which commercializes, among others, beers Sagres and Heineken, ciders, such as Bandida do Pomar and sparkling water such as Água do Luso – to progressively increase their prices in the retail market. A SCC board member and a business unit director of Modelo Continente were also fined by AdC. The AdC’s investigation concluded that the distributors and the supplier concerted prices between 2008 and 2017, that is, for more than nine years, at the consumers’ expense. In the second decision, AdC fined the same four large food retail chains (Modelo Continente, Pingo Doce, Auchan and Intermarché), as well as Lidl and Cooplecnorte (E. Leclerc), for concerting prices, through the spirits supplier Primedrinks, in various alcoholic and spirit beverages, including wines from Esporão and Aveleda producers, whiskies such as The Famous Grouse or Grant´s, Hendrick’s gin or Stolichnaya vodka. This ‘hub-and-spoke’ arrangement occurred between 2007 and 2017, that is, more than 10 years. Although ‘hub-and-spoke’ arrangements differ from traditional horizontal cartels in the lack of direct communication between the horizontal competitors, the adverse market effects may be similar – both may result in a hard-core price-fixing cartel, through a common supplier, thus restricting price competition between players and depriving consumers from price differentiation. Under the current two decisions, AdC imposed, other than fines, the undertakings to immediately cease the ‘hub-and-spoke’ arrangements, as AdC was not able to rule out whether the investigated practices would continue. Competition authorities may face some challenges to prove a ‘hub-andspoke’ arrangement. The strategic nature of information exchanged between suppliers and retailers cannot be the ultimate criterion. 2. How does a ‘hub-and-spoke’ work? ‘ Hub-and-spoke’ arrangements are horizontal restrictions on the supplier or retailer level (the ‘spokes’), which are carried out through vertically related players that serve as a common ‘hub’ (e. g., a common retailer or service provider) . The hub enables the coordination of competition between the spokes wit

FAQs

What did the Portuguese Competition Authority decide in the first hub-and-spoke case?

The AdC issued a decision against six large food retail chains, finding that arrangements via a common supplier helped concert price increases in the retail market over 2008–2017 and imposing a total fine around €304 million.

How does a ‘hub-and-spoke’ arrangement coordinate competition without direct contacts between competitors?

The “hub” (a supplier or common service/retailer) facilitates coordination by enabling information and conduct that affects “spokes,” while horizontal competitors avoid direct communication with each other.

Why is proving a hub-and-spoke arrangement challenging for competition authorities?

Authorities must distinguish legitimate strategic or pro-competitive information exchanges from indirect horizontal collusion, and they may need evidence beyond pricing alignment, such as monitoring, control, and the parties’ purpose and awareness.

Aug 23, 2026

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