Fish farming giants again deny ‘cartel’ claims

The legal news service Law 360 is reporting that the companies being sued by Tesco over alleged cartel arrangements have repeated their denials that any wrongdoing took place.

The salmon farmers’ statement, according to reports,  is contained in “defense” (sic) filings placed before the UK High Court earlier this month.  

Leading UK retailers such as Asda, Iceland, Marks and Spencer, Morrisons, Aldi, the Co-op, Ocado, and Tesco have brought lawsuits alleging that leading salmon producers, in the late 2010s, shared confidential market information in order to manipulate the price.

Tesco then filed its own separate antitrust lawsuit in the London High Court against several Norwegian salmon farmers, including SalMar, Leroy, Scottish Sea Farms, Grieg, Cermaq, and Bremnes, and it is as part of this case that the most recent denial was issued.

Investigations into the collusion claims, by the grocery retailers and the European Commission, are continuing.

The allegations were first raised in February 2019, when the Commission launched an investigation relating to suspicions of anti-competitive cooperation in the market for farmed Norwegian Atlantic salmon.

The Commission pointed the finger at a number of leading companies including Mowi, SalMar, Grieg and Cermaq who have also denied any attempt to manipulate prices.

The allegations were later followed up by the British food retailers in their legal action, which is ongoing.

Meanwhile a group representing British consumers, through Waterside Class Ltd, has filed a £382m class action claim at the UK Competition Appeal Tribunal against a number of Norwegian salmon farmers including Mowi, SalMar, Lerøy, Scottish Sea Farms, and Grieg.

In March this year, the Lerøy Seafood Group said it strongly rejected the Commission’s allegations. It said: “The company has thoroughly refuted the allegations in its comments submitted to the Commission. The company has cooperated with the Commission throughout the Commission’s investigation, and will continue to work constructively with the Commission.

“It is standard practice that these investigations last several years. It is not possible at this stage to make any statement on whether the case will result in sanctions or other negative consequences for the group, or when the case will end.”

In the United States, a class-action lawsuit was filed by seafood distributors such as Euclid Fish Company, accusing Norwegian salmon companies of price fixing. This case was settled in 2023 with a $33m deal involving companies like Mowi, SalMar, Cermaq, Lerøy, and Grieg.

Similar price fixing claims from the United States and Canada have already been settled.