The Spanish Association of Wood Pellet Production Companies (Apropellets) holds its Annual Assembly in Valladolid, coinciding with the latest edition of Expobiomasa 2019.
The association is aware of the growth of the wood pellet market, in which it represents more than 70% of current pellet production and 80% of certified pellets; may increase the risk of anti-competitive actions either by object or by effect, intended or not. Hence, during the Assembly, Apropellets approves the establishment among its associates of a prevention policy to guarantee free competition among them, included in the "Code of good practices for the defense of free competition."
The document establishes measures to reduce the risks of non-compliance with Competition Law and actions to quickly detect possible conduct that restricts competition.
With this measure, Apropellets undertakes to ensure that no agreement or action will or may have potentially restrictive effects on competition. Analyzing with special care those actions that may have undesired results outside or within the association. Actions such as establishing prices or other commercial conditions directly or indirectly, limiting or controlling production, distribution, technical development or investments, dividing the market for products or raw materials or placing competitors at a disadvantage through the establishment of unequal conditions in commercial relations, are some examples that are intended to stop and avoid with this “Code of good practices”.
Business and sector associations, such as Apropellets, are a fundamental part of markets such as wood pellets. A product that currently occupies a small part of its potential market and there is still inefficiency throughout the life of the product in terms of quality, availability or distribution. At Apropellets, different producers, competitors among themselves, therefore join forces with this code of good practices, so that the pellet market progresses, in addition to working so that the consumer can acquire an environmentally sustainable and renewable product, with quality guarantees. and supply.
This collaboration, both inside and outside the association, must be governed by rules and laws that guarantee free competition between associates or other competitors. It has been proven that, in the absence of competition on equal terms, the actors involved neglect other aspects such as improving quality and generate distortions in the market in which consumers, competitors and the market as a whole lose out. Anti-competitive actions, therefore, imply serious damages for Apropellets and its associates and harsh sanctions for those involved that could condition their existence.
Likewise, the study and analysis of the market in all its aspects is key to its improvement and progress. However, it is also necessary to make the management of that information that could be considered strategic compatible with avoiding possible anti-competitive actions or results. It is therefore important that there is no direct exchange of information between competitors and that it is managed confidentially by third parties.
All of this and also taking into account the defense of wood pellet quality guarantees and sustainable management of raw materials, together with the defense of competition, become key pieces for the progress of the wood pellet market. .