Sweden: Press release from the Swedish Competition Authority

Press release from the Competition Authority on 7 February 2006

Price freeze at Pressbyrån and 7-Eleven

Reitan, owner of the franchise concepts Pressbyrån and 7-Eleven, has, following a pointed out by the Competition Authority, agreed to change its pricing system. The change is intended to ensure that individual franchisees can set their own prices for the goods in the shop.

The Competition Authority has investigated whether the pricing system used between Reitan Servicehandel Sverige AB and franchisees within 7-Eleven and Pressbyrån breaches competition law.

Reitan has, after being informed of the Competition Authority's preliminary assessment, undertaken to ensure that franchisees within 7-Eleven and Pressbyrån are free to set lower prices than those recommended by Reitan. Therefore, the Competition Authority has assessed that there is no longer any reason to take action against the practice.

The Competition Authority's decision means that Reitan is bound by its undertaking. The Competition Authority has applied to the Stockholm District Court to have the undertaking made subject to a penalty of 3 million kronor.

• Free pricing and competition between shops contribute to increased consumer welfare, says Claes Norgren, Director General of the Competition Authority, in a comment.

For further information, contact:
Magnus Lindbäck, Project Manager, tel. 08-700 15 03 Jimmy Dominius, Press Secretary, tel. 08-700 15 18 or 073-773 15 80 Read the full decision on our website http://www.konkurrensverket.se

Read the decision on our website http://konkurrensverket.se

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