The Norwegian Competition Authority has imposed a fine of NOK 3 million on St1 Norge AS for breach of disclosure requirements when it took control over a petrol station belonging to a competing chain.
In July 2018, St1 Norway signed an agreement to lease the Best Kyrksæterøra petrol station in Heim municipality in Mid-Norway. The deadline for informing the Competition Authority about the transaction expired three working days after the final agreement was concluded. St1 Norway informed the Authority of the agreement on 14 January 2019.
The Norwegian Competition Authority has imposed disclosure requirements on the largest motor fuel retailers obliging them to inform the Authority about transactions whereby they take control over competing petrol stations.
Such disclosure requirements, which apply to transactions that are not subject to mandatory notification under the Competition Act, have been imposed on St1 since 2017. Disclosure requirements are imposed because even smaller concentrations that are exempted from mandatory notification may harm competition at a national or local level.
The undertakings must, at a minimum, inform the Authority of the date of the final agreement, the parties to the agreement and the date the agreement was implemented.
"Motor fuel retailing markets in Norway are highly concentrated. Acquisitions of individual petrol stations by the large retail chains may increase market concentration in local markets. This may harm competition and lead to higher prices for consumers. The disclosure requirements are an important part of the Authority’s monitoring of the structure and the degree of concentration in the motor fuel retailing markets. If disclosure requirements are not complied with, it becomes more difficult for the Authority to monitor competition in an efficient manner in this sector," says Director General Lars Sørgard.
In light of the reply to the statement of objections from St1 on 16 June 2020 and a fresh review of the facts of this particular case, the Authority has concluded that the infringement could not be regarded as serious. Consequently, the Authority has reduced the fine significantly, from NOK 15 million to 3 million. ■