The Office for Competition refers to the recent announcement from Malta Dairy Products Ltd (Benna) as reported in the media, indicating an increase in the price of their fresh milk product range as from Monday 29th July 2019.
The Competition Office wishes to clarify that in a competitive market, Malta Dairy Products is free to establish the pricing of its products. Having said this, the Office considers the Benna fresh milk product range may hold a strong market position. In such a scenario, any price increase cannot be excessive to the detriment of consumers.
The Office, following the first indications in the media of potential increases in the Benna milk products prices, last year held a meeting with Malta Dairy Products who have been advised that, should any price increase take place, the Office will be requesting details of how the price increase was established. This was further followed up with Malta Dairy Products over the past months. The Office will be initiating an investigation to examine whether the actual increase on the price of milk is a result of an abuse from a dominant position in breach of the Competition Act.