Sérvulo secures Court victory in tobacco market case

SÉRVULO IN THE PRESS 18 Feb 2025 in Iberian Lawyer

The Portuguese Federation of Tobacco Wholesalers (FPGT), represented by SÉRVULO, has won a key legal battle against the Competition Authority (AdC). On February 12, the Competition, Regulation, and Supervision Court (TCRS) ruled in favor of the FPGT, annulling an AdC decision on tobacco market concentration. The court found that the AdC’s decision, which authorized MidSid—a Logista Group entity—to acquire wholesaler Dois Lados, was based on incorrect factual assumptions, undermining its legality.

This ruling marks the second time the FPGT has successfully challenged an AdC decision on merger control in this sector. Nationally, it is only the third instance in over 20 years where a court has overturned an AdC non-opposition ruling in a merger case, states Sérvulo. The AdC had previously faced a similar annulment but proceeded with its approval of the MidSid acquisition, disregarding the FPGT’s concerns. The federation was forced to take legal action to ensure compliance with market regulations.

The court’s decision is pending final judgment, though the AdC could, in theory, appeal to the Lisbon Court of Appeal, which has overturned a similar ruling in the past.

FPGT was advised by Sérvulo & Associados lawyers Miguel Gorjão-Henriques, Alberto Saavedra, Henrique Rodrigues da Silva, and Francisco Marques de Azevedo.

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