Commitments from fuel companies improve conditions for price competition

The investigation was prompted by the fact that Circle K Sverige AB, OKQ8 AB, and Preem AB publish price information regarding recommended prices for private consumers and list prices aimed at corporate customers for light transport. This information is openly available on the companies’ websites for anyone to access.

The Swedish Competition Authority's investigation found that the publication follows a recurring pattern. Circle K, the price leader, publishes changes to its recommended prices and list prices in the morning. Within approximately an hour, OKQ8 and Preem follow suit, publishing the same prices or prices differing by a fixed number of öre (Swedish currency subunit) from those posted by Circle K.

Against this background, the Swedish Competition Authority examined whether the companies’ publication of pricing information could constitute price coordination between competitors in breach of the competition rules. In its preliminary assessment, the Authority noted that the publications do not appear to provide sufficient benefit to private customers to justify the approach.

 “Price transparency can be both positive and negative for consumers. Depending on how a market functions, companies may risk harming competition if they signal prices by publicly announcing price increases or strategies. Under certain conditions, price signalling can also lead to unlawful price coordination between companies, resulting in higher prices for consumers,” said Hanna Witt, Acting Director-General of the Swedish Competition Authority.

Circle K, OKQ8, and Preem have now submitted voluntary commitments, which mainly involve discontinuing the public publication of recommended prices for certain fuel products, including petrol and diesel, for private customers in the manner currently practised. They have also committed to delaying the publication of list prices for fuel aimed at corporate customers for light transport. The commitments do not prevent the companies from, within certain limitations, sharing information about recommended prices and list prices with businesses through direct communication or other forms of communication that are not publicly accessible.

The Swedish Competition Authority has determined that the commitments from Circle K, OKQ8, and Preem address the competition concerns preliminarily identified during the investigation and has therefore decided to accept the commitments. If one of the companies fails to comply with its commitments, it may be subject to a default fine of SEK 100 million. The commitments will remain in effect for three years.

The fuel company St1/Shell, which was also part of the investigation, has been cleared from further scrutiny.

In parallel with this enforcement investigation, the Swedish Competition Authority has conducted a sector inquiry, mapping and analysing competition in the fuel sector, during 2022 and 2023. The inquiry was conducted on a Government assignment, whereby the Authority was instructed to study potential measures to promote competition, and to propose the introduction of such measures that the analysis showed to be appropriate. The inquiry was finalised on 2 December. The Swedish Competition Authority has concluded that, in light inter alia of the outcome of the parallel enforcement investigation, no further measures are currently required to enhance competition in the fuel market.

Johan Sahl, Head of Unit, + 46 8-700 16 22, johan.sahl@kkv.se
Marie Strömberg Lindvall, Press Officer, +46 76-542 15 92, marie.stromberglindvall@kkv.se

Read the decision, dnr 382/2023 (in Swedish)