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Fri, 27 Jun, 2014 12:06:53 AM
FTimes-STT Report, June 27

The dairy producing company Valio was on Thursday found culpable of practising unfair competition by the Market Court.

The court imposed a 70 million euro penalty on Valio and ordered the company to compensate another dairy company, Arla Ingman about 100,000 euros in legal costs.

According to the court, Valio had an elaborate plan to displace Arla Ingman from the market by under-pricing milk.

Valio practically sold milk at a loss in the period of 2010-2012.The court ruled that the below-cost pricing incurred significant losses to its competitors.

The court held that Valio knew the pricing was unsustainable and that its competitors could not match its pricing.

Valio’s intention was to raise the price of the milk to the previous level after dislodging its competitors.

According to the court, Valio abused its position in the market and termed its actions a serious obstacle to competition.

The fine is one of the biggest-ever imposed on a single company in the country, said the Finnish Competition and Consumer Authority KKV.

KVV welcomed the court ruling and believe that this is a strong signal against abuse of a dominant position in the market and unfair competition.
 

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