The Supreme Administrative Court imposes a penalty payment on Valio for milk pricing

The Supreme Administrative Court considered Valio’s milk pricing a violation of the Competition Act and ordered a penalty payment of EUR 70 million.

In 2012, the FCCA deemed Valio guilty of predatory pricing in Finland’s fresh milk markets, with the objective of foreclosing competition in them. In its decision issued in late 2012, the FCCA ordered Valio to discontinue the abuse of its dominant market position and proposed that the Market Court impose a EUR 70 million penalty payment on Valio for its violation of the Competition Act.

In its ruling in the matter on 26 June 2014, the Market Court imposed a penalty payment on Valio as proposed by the FCCA. In its decision issued today, the Supreme Administrative Court upheld the outcome of the Market Court’s decision.

“Normally, price reductions are in the consumers’ interest and an indication of effective competition. In this case, however, the abnormal underpricing would have forced Valio’s competitors out of the markets, thereby strengthening Valio’s position. In the long term, this would have weakened competition and resulted in price increases, which would have been harmful for consumers,” says Juhani Jokinen, Director General of the Finnish Competition and Consumer Authority.

Read more:
KHO pysytti voimassa Valion 70 miljoonan euron seuraamusmaksun (Supreme Administrative Court press release 29 December 2016, in Finnish only)
FCCA satisfied with Market Court ruling on Valio (FCCA press release 26 June 2014)
FCA proposes a €70m fine on Valio for abuse of dominant position in the fresh milk market (FCA, currently FCCA press release 20 December 2012)

Further information:
Juhani Jokinen, Director General, tel. +358 29 505 3389