Sale of Madeira bananas leads to fines from the Competition Authority

A banana trading company in Madeira was fined by the Competition Authority for abuse of a dominant position. The fine was €30,000 , following the entity's cooperation in the proceedings initiated by the regulator and also taking into account the turnover involved and the "short duration" of the infringement. The Competition Authority (AdC) emphasized in a statement that the company expressed its immediate willingness to put an end to the restrictive practice.

According to the process available on the AdC website, the company is Gesba — Empresa de Gestão do Setor da Banana (Banana Sector Management Company) based in Funchal, of which the Autonomous Region of Madeira is the main shareholder.

At issue was the requirement that banana producers in Madeira sign a declaration of exclusivity . The practice, which began in January 2025, violates competition law, and the AdC considers that this type of behavior distorts the competitive process by imposing conditions on banana producers aimed at maintaining their dominant position in the market, creating barriers to competitors.

The case arose following a 2024 recommendation from the Competition Authority to the Autonomous Region of Madeira, aimed at removing legal barriers to the entry of new companies in the banana sector and encouraging the emergence of more operators in the commercialization phase. The regulator identified behaviors that could be considered restrictive of competition.

According to the AdC, the company cooperated with the investigation from the outset and agreed to the settlement procedure, a mechanism that allows for procedural gains without jeopardizing the enforcement of penalties for the violations. This cooperation contributed to reducing the fine.