Funeral Services: The First Agreement Decision by the Polynesian Competition Authority Sets the Tone

The book from which the extract is taken is titled: Competition Law and the Challenges of Insular Economies – A Focus on French Polynesia and the Pacific Region

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Extract: In early November 2022, the Polynesian Competition Authority (APC) published its first ever cartel decision. This decision imposes cumulative penalties of just over XPF 6 million (around €50,000) on 11 small funeral companies for colluding to fix prices during the Covid-19 pandemic period.

The case was triggered by reports from the Te Tia Ara consumer association and the Directorate General of Economic Affairs (DGAE). The Polynesian Authority, which referred the matter to itself in March 2021, conducted the procedure smoothly, resulting in a penalty decision less than 18 months later. While the companies and the case are modest, this decision is a strong act on the part of the Polynesian Authority to illustrate how a competition authority can watch out for abuses in times of health crisis, when Polynesia has been particularly hard hit by the Covid-19 crisis, with 636 deaths at the end of the “Delta” wave on 27 October 2021 1 and a GDP loss of 10% in 2020 alone.

This first cartel case dealt with by the Polynesian Competition Authority is reassuring in that it applies classic, tried and tested principles at French and European level to the various levels of analysis. On the substance, it is emblematic of the competition difficulties that can arise in conditions of health crisis when companies are legitimate in taking joint action but must have the strength to resist going beyond that, even though they do not feel they are breaking the rules. Finally, in terms of fines, it appears that much remains to be done in Polynesia because the Authority does not have all the tools at its disposal, but it has nevertheless done its utmost here to aim for effectiveness.