The Competition Authority has published guidelines on transactions between suppliers and food retailers. The rules address the content and form of commercial contracts between suppliers and food retailers, i.e. the matters which the Competition Authority considers it desirable to include in their contracts to ensure good commercial practices. In accordance with good business practice, it is desirable for all companies in the market to take the guidelines into account when drawing up contracts, regardless of their position in the market in which they operate. Although these are primarily guidelines, it may constitute an infringement of competition law if a company with significant market power uses that power to negotiate its way out of the provisions of the rules. The rules address, among other things, companies' interference with the pricing and commercial terms of other companies. Breaches of these specific rules can constitute a serious infringement of the prohibition in Article 10 of the Competition Act and may be subject to penalties.
In early May 2001, the Competition Authority presented a report it had compiled, „The Food Market – Retail Price Development 1996–2000“. One of the report's conclusions was that increased buyer power in the food market had led to business practices which in some cases might be contrary to competition law.
Press release in PDF format (PDF document – Opens in a new window).
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