Portugal updates

Competition & Antitrust

Competition enforcement in Portugal – 2017 in review
  • Portugal
  • January 11 2018

The new Competition Authority president recently completed her first full year in office with impressive results. Since November 2016 the authority has adopted six infringement procedure decisions, one commitment decision and two fining decisions. Further, the transposition of the EU Directive on Antitrust Damages Actions into national law appears to be close to completion. As a result, it seems likely that 2018 will start with the approval of a new legal framework for the private enforcement of competition law.

Competition Authority finds that exchange of information on prospective prices did not infringe competition law
  • Portugal
  • November 02 2017

The Competition Authority recently ended an investigation into the exchange of prospective prices between pork meat producers, meat processors and slaughter houses with no finding of anti-competitive practice. This is the first Competition Authority decision to validate an information exchange scheme involving (but not limited to) competitors. As such, more straightforward guidance from the authority on how this case differs from prior cases and justifies such a benign approach would have been welcomed.

A busy year: overview of Competition Authority's 2017 activities
  • Portugal
  • September 21 2017

To date, 2017 has been a busy year for the Competition Authority. During the first half of the year, the Competition Authority made 36 dawn raids on companies operating in several economic sectors. Although no details of the dawn raids have been released, the authority has clarified that it gathered evidence concerning cartel activities and other practices concerning the offering of goods and services with a direct impact on the final consumer.

Margin squeeze win for Competition Authority reversed almost entirely on appeal
  • Portugal
  • August 17 2017

In a significant defeat for the Competition Authority, the Lisbon Court of Appeal has partially reversed a first-instance judgment and repealed the main fine imposed in a margin squeeze case which involved pharmacies' sales data for prescription medication and consumer health products. The decision re-emphasises the autonomy, for antitrust liability purposes, of separate legal parties in the same economic group.

Fighting bid rigging: Competition Authority's advocacy initiative in public procurement
  • Portugal
  • April 27 2017

The Fighting Bid Rigging in Public Procurement campaign is a highlight of the Competition Authority's recent advocacy initiatives. The campaign is intended to raise awareness among the state bodies that regularly award public contracts of the most common issues concerning bid rigging in public procurement. It also advises on how to detect illegal practices in the context of public tenders and design tender programmes in a way that inhibits potential collusive tendering.


Employment & Benefits

Appeal court rules on employer's decision to withdraw public holidays
  • Portugal
  • January 04 2017

A recent Guimaraes Court of Appeal case examined the legality of an employer's decision to withdraw two public holidays from its employees. The court held that the granting of the public holidays to employees amounted to a binding employment practice, as it was general in character, fixed and constant. As a result, the court decided that the employer could not make a unilateral change to the practice that, because of its classification as a custom, had become binding.

Supreme Court of Justice rules on employee dismissal following employer insolvency
  • Portugal
  • December 21 2016

A recent Supreme Court of Justice decision examined whether the payment due for the termination of an employment contract as a result of a collective dismissal following an employer's declaration of insolvency was a debt of the insolvent estate or the insolvent company. The court decided that the compensation awarded to the employee in the case at hand was a debt of the insolvent company and not the insolvent estate.

Changes to employment support introduced
  • Portugal
  • December 14 2016

Recent changes to employment law have removed the obligation on unemployed people to present themselves at an employment exchange every two weeks in order to maintain their unemployment benefits. The changes have also introduced a system of personalised employment support, which involves integrated support for the recipients of unemployment benefits.

Supreme Court considers lawfulness of employee dismissal
  • Portugal
  • October 12 2016

A recent Supreme Court of Justice decision evaluated the lawfulness of a dismissal resulting from an irregularity in the employee disciplinary proceedings due to a violation of the adversarial principle and the right to a defence in disciplinary proceedings. The court found that the person handling the proceedings had not presented her case regarding a request to provide evidence and declared the proceedings to be invalid.

Amendments to employment law introduced
  • Portugal
  • September 28 2016

Law 28/2016 recently introduced amendments to the Employment Code regarding the rules promoting health and safety at work and the operation and licensing of private placement and temporary employment agencies. Among other things, the changes increase the responsibility of employers in relation to temporary employment and the occasional provision of workers.


Energy & Natural Resources

Contributed by Morais Leitão, Galvão Teles, Soares da Silva & Associados
Merchant solar projects in Portugal: growing interest and challenges
  • Portugal
  • June 25 2018

With the increasing number of projects being licensed under market rules, renewable energy generators are now faced with energy trading under organised markets, without a traditional power purchase agreement with the off-taker. The new reality of operating without a feed-in tariff is challenging – particularly as regards meeting bankability requirements. However, stakeholders are exploring alternatives.

New rules for obtaining electricity generation permits when request capacity exceeds grid capacity
  • Portugal
  • March 12 2018

The 2018 state budget amended Article 33-F of Decree-Law 172/2006, which establishes the criteria that applicants must fulfil to generate electricity via renewable and non-renewable endogenous resources on a market basis in order for the licensing authority to grant a generation licence or accept a prior notification. The amendment aims to establish new rules for when the relevant network has insufficient capacity to support the additional load that results from requests submitted to the licensing authority.

Government approves decree-law on private service electrical facilities
  • Portugal
  • November 27 2017

The government recently approved a decree-law which establishes the legal framework for medium, high and low-voltage private service electrical facilities powered by the public service electric network and temporary and itinerant self-generation facilities. The law will enter into force on January 1 2018 and revoke the Electrical Facilities Licensing Regulation, as amended, but only with regard to the provisions applicable to private service electrical facilities covered by the new framework.

New biomass legal regime introduced
  • Portugal
  • August 14 2017

The special and extraordinary legal regime for the construction and operation by municipalities, inter-municipal associations and municipal associations of biomass plants for specific purposes was recently approved by way of a decree-law. However, the regime has not been fully implemented, as the government must decide on the terms of the licensing procedures and the remuneration of energy generated by biomass plants licensed under the new regime.

Logistics Operator for Switching Electricity and Gas Supplier created
  • Portugal
  • May 29 2017

Decree-Law 38/2017 recently created the Logistics Operator for Switching Electricity and Gas Supplier (OLMC), which will be responsible for ensuring that consumers can switch their electricity and natural gas suppliers in a swift and simple manner using transparent, non-discriminatory, standard and digital procedures. The OLMC will also enable consumers to access information concerning applicable energy tariffs and prices and their rights and obligations in the switching process.


Insurance

Contributed by Morais Leitão, Galvão Teles, Soares da Silva & Associados
Supreme Court clarifies late payment of insurance compensation
  • Portugal
  • April 03 2018

When an insured event takes place, the insurer is bound to compensate the insured for the corresponding loss. However, the law is not entirely clear as to the moment when this payment should occur. Although Portuguese judicial decisions on this subject have thus far been inconsistent, a recent Supreme Court judgment appears to have shed light on the intended scope and meaning of the relevant legal provisions.

General good provisions: freedom of establishment and freedom to provide services
  • Portugal
  • February 20 2018

The Insurance Supervisory Authority (ASF) recently published a consultation paper requesting comments on the draft regulatory norm, which sets out the general good provisions applicable to insurers acting in Portugal under the freedom of establishment or freedom to provide services. The draft sets out a number of general good provisions which would be applicable to the distribution of all types of insurance and provisions which would apply to the distribution of mandatory insurance and life insurance products.


Intellectual Property

Contributed by Baptista Monteverde & Associados
IP Court grants SPC for second medical use
  • Portugal
  • February 23 2015

The IP Court has granted a supplementary protection certificate (SPC) for a second medical use, despite the existence of a previous SPC for the same product and the same basic patent, and contradicting the practice of the Portuguese Patent Office. The decision illustrates the harmonisation of Portuguese jurisprudence with European Court of Justice jurisprudence on SPCs.