The Directorate General for Competition, Consumption and Fraud Suppression (DGCCRF) of France has reported that three supermarket chains have been fined and will have to pay more than four million Euro for not respecting farmers’ prices. The biggest sanction has been applied to Carrefour, with a 2.93 million Euro fine. For their part, Sistème U will have to pay 1.14 million, and Intermarché 211,000 Euro.
These amounts are proportional to the number and extent of the delays, as well as the expected billing. Trade negotiations between distributors, agricultural producers and industrialists are carried out from mid-October to the end of February and must establish the prices of the products that will be placed on the shelves during the next year.
The DGCCRF has said that “the fact of not having signed the agreement within the allowed time is likely to break the balance of power in favor of the distributor,” adding that some 5,500 controls have been made on the application of the new rules governing promotions.”
The regulations in France were promulgated in October 2018, aiming to prevent the domino effect caused by the price war between the four major distributors in France. In the course of these negotiations, they demand increasingly lower prices from their suppliers, which in turn buy the agricultural raw materials from producers in the cheapest way possible.