Wednesday, April 1, 2015

The Competition Authority wants to strengthen competition between … – Le Figaro

She published this morning its opinion on the recent mergers of central purchasing (Auchan and Système U, Intermarché and Casino, Carrefour and Cora). The authority denounces the risks and offers better fight against the economic dependence of industry.

The Competition Authority emphasizes the risks of concentration among food retailers, in an opinion released Wednesday about recent comparisons of purchasing centers (Auchan and Système U, Intermarché and Casino, Carrefour and Cora). “These cooperation agreements have been concluded in a particular context of price war exerting pressure on the margins of the operators,” says the Authority, which conducted twenty hearings on the subject.

“If such agreements can lead to pro-competitive effects including price levels for consumer products purchased by consumers, the Competition Authority has nevertheless identified several competitive risks in upstream and downstream markets “says the notice, citing the one hand (for retailers) the exchange of information between signs, the symmetry of the purchase terms, the reduction of inter-company mobility, and also (for industrial), the risk of limiting supply, reduction in quality or incitement certain suppliers to innovate or invest, and the risk of eviction suppliers.

In a context growing tensions between manufacturers and retailers, the Authority, recently accused of being too favorable to them, points out in his opinion that “the investigation has now resulted in the existence of practices that call for vigilance,” such “The delisting practices” and “to the practices of unrequited benefits requirements,” regularly denounced by the industry.

In conclusion, the Authority “invites operators to pay particular attention to the how they choose suppliers concerned the scope of the agreements, said, in general, the importance of strengthening competition in the retail sector, and advocates the establishment of a legal obligation to notify any new merger agreement. “

Specifically, it proposes” a modification of the device to understand the abuse of economic dependence “between manufacturers and retailers” to make it more effective. ” Remains to be music that proposal. The opinion emphasizes that “the practices referred can essentially be examined under the rules on restrictive business practices within the jurisdiction of the department and commercial courts.”

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