The FCCA concludes the investigation of Yara’s commercial practices

The FCCA’s investigation did not reveal proof that Yara Suomi Oy’s practices in the trade of agricultural fertilizers would restrict competition. The Agency will not take any further action in the case.

Yara is the only manufacturer of inorganic fertilizers in Finland. 70-80% of the fertilizers sold in Finland are manufactured by Yara. Yara’s only activities in Finland are the manufacture and wholesale of fertilizers. The company does not sell products directly to merchants or farmers, but distributes fertilizers through retail networks of agricultural central firms that act as wholesalers.

In May 2014, the FCCA initiated its own investigation into Yara’s conduct in the sale of agricultural fertilizers. Yara has a strong position in the fertilizer trade in Finland and the agency investigated certain procedures of Yara as possible abuse of a dominant market position. In the investigation, the agency focussed on whether Yara’s discount and support system restricted competition in the fertilizer market and impeded the market entry of competing fertilizer manufacturers. The FCCA also prepared an economic assessment of the discount system’s market impacts.

The import of fertilizers has increased significantly over the last few years.  Based on the agency’s economic analysis, the discount system applied by Yara has not prevented effective competition.  In addition, Yara submitted a report to the Agency stating that the company applies equal terms and conditions to purchasers of fertilizers with whom cooperation and the scope of such cooperation are mutually correspondent to a sufficient extent. Yara informed the FCCA that it negotiates with potential buyers in good faith on the cooperation it conducts with them and the scope of such cooperation, and the applicable terms of sale.

According to FCCA’s assessment, no evidence was found that Yara’s procedures result in the restriction of competition. The case was therefore closed on 27 October 2017.