Trade: None “basket money”but unfair practices

Trade: None “basket money”but unfair practices

Natalie Harsdorf-Borsch, Director General of the Federal Competition Authorities
Image: EVA MANHART (APA)

Why have the prices of food and drinks risen sharply in recent years? And has anyone benefited above average from this development? In order to clarify these questions, the Federal Competition Authority (BWB) examined the market for a year based on data from retailers and suppliers. More than 700 trading companies and 1,500 suppliers were surveyed.

The results of the largest industry investigation since the BWB was founded were presented yesterday by the designated BWB boss Natalie Harsdorf-Borsch. Accordingly, no price agreements could be determined. The food trade is also not a beneficiary of the increased prices: It could not be determined that the retailers tried to increase trading margins and profit margins under the guise of inflation, said Harsdorf-Borsch.

According to the BWB, the investigation revealed several weak points with regard to the competitive situation: “The number of reported unfair practices against suppliers is worrying.” Four out of ten producers surveyed had been confronted with unfair behavior within the meaning of the Fair Competition Conditions Act at least once in the past five years: This includes, for example, unilateral contract changes or short-term order cancellations for perishable goods.

More than a third stated that they had already been threatened with delisting if they did not accept the price demands.

The concentration in the Austrian food trade is high: the big four (Rewe, Spar, Hofer, Lidl) control more than 90 percent of the market (in Germany it is 76 percent). According to Harsdorf-Borsch, investigations have already been started against retail chains for violations of the Fair Competition Conditions Act, and there are expected to be applications to the Cartel Court this year. It was not stated which dealers were involved.

1,000 consumers were also surveyed: 85 percent would like a free price comparison platform, 25 percent would pay for it. This was also discussed “Austria price surcharge”, according to which products in Austria are on average 13 percent more expensive than in Germany: International corporations in particular charge different prices for the same products, it was said. According to Harsdorf-Borsch, this problem should be submitted to the EU Commission. Farmer representatives and traders welcomed the results, which the FPÖ missed “clear answers”.

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