Morocco’s Competition Council Finds Evidence of Fuel Price Fixing by Oil Companies

"The prices of fuels and the suspicions of the existence of anti-competitive practices in the market, after its liberalization in December 2015, have become a recurring issue, eminently economic, political and social, which is of concern to public opinion," notes the investigation report sent to the 9 operators concerned by the investigation and to the GPM.

L’Économiste recalls the charges against the professional association of oil companies: "the existence of a decision of an association of companies and concerted practices as well as the collection, exchange and dissemination of sensitive commercial information between the member operators of the GPM".

Diesel and gasoline distributors had two months from May 22, 2019 to respond to the Competition Council. "The careful and thorough examination of the GPM’s observations has allowed the Competition Council’s investigation department to maintain the previously notified grievances in their main lines," the investigation report states.

The rapporteur of the investigation, Mohamed Hicham Bouayad, suggests that the Competition Council "impose a fine of 4 million DH" on the professional association of oil companies, which "corresponds to the legal maximum" provided for in Article 39 of the law on price freedom and competition. "Not all the parties involved (9 companies) are concerned by the same grievances," the investigation report specifies. Consequently, other financial penalties have been retained for each company involved.

As for these companies, the law provides for a maximum financial penalty "of 10% of the highest worldwide or national(1) turnover excluding taxes (...) realized during the fiscal years closed since the fiscal year preceding the one in which the (anti-competitive) practices were implemented".

The members of the Competition Council will have to deliberate independently in the next few days.