Yesterday, the German competition authority annulled the acquisition of Vion's abattoirs by the processing plant Tönnies. The merger was annulled, among other reasons, because it would have strengthened Tönnies's position and had a detrimental effect on farmers and smaller competitors. According to the competition authorities, the merger would have weakened the position of farmers by reducing their ability to choose a processing plant and to move their slaughter elsewhere.
Further information on the matter can be found in an English press release. here.
In Iceland, the Competition Authority no longer has the authority to investigate the effects that the merger of processing plants could have on farmers and consumers. Proponents of the exemptions in the agricultural laws have wrongly claimed that they are modelled on those in neighbouring countries. It is imperative that the Minister of Fisheries and Agriculture's bill to abolish the exemptions is passed without delay.
"*" indicates required fields
