Changes in the law on protection of competition because of retailer chains

Date: 21/09/2012 Comments: 0
Images (1)

Representatives of four parties filed amendments to the law on protection of competition, based on numerous requests from producers. Their main objective is to limit the monopoly of retailer chains in signing contracts with food producers.

Because of the market imbalances caused by the relations between producers and retailers, the pushers of the law propose to introduce adequate protection against unilateral imposition of "market power" in the contracts.

A new concept called "significant market power" will be introduced along with the criteria for its definition, reported Investor.

The statutory changes are caused by the numerous signals from producers that complain of the unilateral implementation of promotional programs by hypermarkets which force the producers to sell their products at prices below production cost.

The producers will have to conform to these contracts because of the need to remain present in the retailer chains where demand is greatest. If the changes in the law come into force, the Commission for Protection of Competition will have to make appropriate adjustments to its rules of procedure.

Comments (0)

Oldest first Comment