The Swedish Competition Authority's decision to fine a wholesale company stands firm after court review

The Swedish Competition Authority considered that Everfresh had used an unfair trading method by not paying its suppliers on time. In October 2023, the Swedish Competition Authority made its first decision to impose an administrative fine under the Swedish Act on the Prohibition of improper trade methods between companies in the agricultural and food production chain (LOH).

"There has, in our view, been no uncertainty that the payment periods used by Everfresh were prohibited under LOH. The violation directly impacts suppliers' liquidity and as such has a negative impact on suppliers, which LOH aims to prevent. We are therefore pleased that the court shares our assessment in all aspects, both regarding the seriousness of the violation and the size of the administrative fine," says Marie Östman, Chief Legal Officer at the Swedish Competition Authority.

It was after the Swedish Competition Authority received information that Everfresh, a wholesale company in fruit and vegetables and part of the global Dole plc group, had not adjusted its payments to comply with LOH that the Swedish Competition Authority initiated an investigation.

The investigation revealed that Everfresh had, on numerous occasions, paid its suppliers late, and the total amount of these late payments was relatively high. The Swedish Competition Authority subsequently decided that the company should pay an administrative fine of SEK 5 million for having used an unfair trading method. This was the first decision to impose such a fine by the Swedish Competition Authority since the law came into force. Everfresh appealed the Swedish Competition Authority's decision to the Administrative Court, which has now decided on the matter.

In its judgment, the Administrative Court agrees with the Swedish Competition Authority's assessment that the conduct constitutes a serious violation of LOH and that there are grounds for fining the company. The court also states that the arguments Everfresh presented during the proceedings do not warrant a reduction of the fine decided by the Swedish Competition Authority. Everfresh's appeal is therefore rejected in its entirety.

The Administrative Court's judgment can be appealed to the Court of Appeal in Stockholm.

Stefan Olsen Siri, Legal Counsel, +46 8 700 15 37, stefan.olsensiri@kkv.se
Masoud Kinsdale, Legal Counsel, +46 8 700 15 14, masoud.kinsdale@kkv.se
Marie Strömberg Lindvall, Press Officer, +46 76 542 15 92, marie.stromberglindvall@kkv.se

Read the Administrative Court's judgment, case no. 22281-23 (in Swedish)