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Spain: NMC fines Disa Corporación Petrolífera 1 million euros for defaulted on commitments

Christian Fernsby |
The National Markets and Competition Commission (CNMC) in Spain imposed a fine of one million euros on Disa Corporación Petrolífera S.L for having defaulted on several of the commitments that the oil company acquired in order to formalize the purchase of 50% of Shell Aviation España S.L in 2013.

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Non-compliance with commitments in concentrations authorised by the CNMC is a very serious administrative infringement provided for in Article 62.4(4.c) of Law 15/2007 of 3 July on the Defence of Competition.

On 25 March 2013, the defunc National Competition Commission (CNC) authorized Disa to purchase 50% of Shell Aviation Spain, but conditioned on disa fulfilling seven commitments and thus avoiding competition problems in the markets concerned.

In 2016, the CNMC, during its work to monitor the operation, considered that 3 of the commitments imposed (commitments 4th, 5th and 6th, relating to the maritime transport of kerosene between islands) should be extended, in order to ensure that access to the maritime transport service for aviation fuel between the Canary Islands was carried out under objective, transparent and non-discriminatory conditions.

In this regard, Disa should continue to publish certain information on its website about the tariffs applied to its customers, the system of third-party access to inter-island transport services, and its investment plan.

In addition, it remained required to periodically report to the CNMC information concerning registered service requests, journeys and physical or contractual congestion. However, in view of the evidence of non-compliance with those commitments, on 2 March, the CNMC initiated a sanctioning file against the company.

Once the sanctioning procedure has been instructed, the CNMC has established the following breaches of the 4th and 5th commitments by the oil company:

- Disa did not update on its website the information about services and tariffs applied in accordance with the contract with an oil operator of January 1, 2018.

- Nor did it update (web) the tariffs applied for services provided to two oil operators (the first from June 2019 and the second from August 2019) in view of the cargo ports that these companies used.

- Nor collected the investment plan for 2018 and 2019.

Disa also defaulted on the 6th commitment by failing to inform CNMC in its monthly reports of three 2019 transport applications. This situation prevented the objectives of the commitment, accepted by the company in 2013, from being achieved and which sought to address the risks to competition by the purchase of 50% of Shell.

For this reason, CNMC has fined Disa Corporación Petrolífera S.L one million euros as responsible for several administrative infringements of a very serious nature, provided for in Article 62.4.c) of Law 15/2007, of 3 July, on the Defence of Competition.

The CNMC recalls that there is no administrative appeal against this Resolution, and may bring an administrative appeal at the Audiencia Nacional, within two months of notification.

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