The French competition watchdog has imposed a fine of 19.2 million euros on supermarket group Intermarché (ITM Alimentaire International) for “unclear contracts”. Other supermarket chains are also at risk of being fined.
Fees on top of contract
According to the French competition authority, the purchasing organisations of the French supermarket chain failed to draw up sufficiently traceable contracts with a large number of suppliers. Farmers and manufacturers were charged fees by the purchasing centres, more specifically, the former Agecore and ITM Belgium, and it has not been clear why they were charged. Also, the invoices were not included in the annual agreements.
The sums paid by a large number of suppliers in France to an international centre for commercial cooperation services were not mentioned in the contracts, the conclusion reads. This violates the rules on the traceability of contracts, which is why the market authority is now imposing a fine of several million euros.
Three other retailers risk being fined
The entire French supermarket scene comes into focus: three other retailers, who have not (yet) been named, also risk fines, as the government services have identified several breaches in terms of logistic sanctions. These are fines that supermarkets can impose on their suppliers if they fail to complete their deliveries.
According to the French Ministry of Economic Affairs, the investigators have uncovered “an imbalance in the procedures”. For example, in the case of one retailer, it was revealed that proof of the imposed penalties was lacking and that the amount of the fines was sometimes deducted automatically, even when the supplier disputes the penalty.
A procedure against the supermarket chain in question is underway: if one of the regional purchasing centres does not improve its conduct within three months, a fine will be imposed for each day it fails to do so. The two other retailers will be subject to stricter supervision. If the suspicions of illegal practices get confirmed, they too will face legal action.
French minister demands level playing field
It is no coincidence that the French competition watchdog is striking at this very moment: the end of the annual negotiations between suppliers and supermarket organisations is approaching, but due to high inflation and price increases, these talks have been tough this year. The producers’ complaints were heard by the French minister for industry, Agnès Pannier-Runacher, who wants to prioritise establishing a level playing field between the players in the agri-food industry.
According to the minister, the trade negotiations must reflect equivalence. For her, the inspections are “essential” and “will be carried out with determination, including concerning purchasing or reference centres based abroad”, quotes trade magazine LSA.
In addition, since February last year, Intermarché has been sued for unfair commercial practices at AgeCore, a purchasing group that has since disintegrated, and at ITM Belgium. The French government is demanding a fine of 150.75 million euros, but the Paris Commercial Court has not yet ruled on the matter.
