I think prices will increase on all items – VG

The Norwegian Competition Authority announced Tuesday that it will award Coop, Rema and Norgesgruppen a record rate of NOK 21 billion.

The reason for the fee is that the Norwegian Competition Authority believes that there has been illegal price cooperation between the chains in relation to the use of price hunters. The Authority believes that the price search scheme for the chains has damaged competition in the market.

They believe it may also have raised consumer food prices.

Wholesale trade expert Odd Gisholt believes that retail chains shouldn’t be fined billions.

– The Norwegian Competition Authority has known about the price hunter deal for 10 years. If the audit had meant it was not allowed, then they should have reacted long ago, he says.

He says that it is the consumers who will have to pay the price, because the stores are forced to set the price of their products.

– Consumers have to pay

The retail expert estimates that the price will increase by around 10 percent per item on average.

– For families with young children, this is a lot of money, so it will affect their total finances, says Gisholt.

VG spoke to several clients at a Coop Prix in downtown Oslo on Tuesday.

– It seems silly that people should pay a fine for being fined, says Mats Myrvold Johansen.

He says a possible price increase will have a lot to say about him as a student.

– It was not good news, adds.

Lilah Trewgille believes that it is unfair that customers have to pay. He adds that more people will travel to Sweden if prices increase.

Henning Hoyer does not think prices will go up. He hopes that the case will lead to less price cooperation between the chain stores and this will lower prices.

Has been researching for several years

The Norwegian Competition Authority issued the warning after several years of investigation, which they believe has uncovered illegal price coordination.

The announced reaction comes after the audit conducted a raid on networks in 2018.

Since then, the investigation has been directed at the price search plan, which was established through an industry standard in 2010. The plan has given chains access to each other’s stores for a certain period of time each. week.

– Our research shows that the practice of scanning prices in each other’s stores may have led the chains together to push prices up, says department director Magnus Gabrielsen at the Norwegian Competition Authority.

Believe the chains will lose all their fairness

Gisholt hopes that none of the reported fees will be paid. He says that nearly all of the chain stores’ equity capital will go to pay the possible fine, and that the stores will have to raise the prices of their products.

– Prices will rise significantly. I’m absolutely sure of that, he says.

However, he believes that it may take several years before customers notice changes in prices. The chains are protesting savagely, so this will take time, he says.

– My clear proposal is that if these three chains have to pay this fine, all their assets will disappear, then they will not be able to lower prices. To survive, they have to bear the prices.

The Authority intends to award Norgesgruppen the highest rate of NOK 8.7 billion. This has caused the food giant to react strongly.

– Norgesgruppen categorically rejects that the industry standard and the use of price hunters is a violation of the Competition Law, communications director Stein Rømmerud tells E24.

– We think the price hunting business has led to lower prices and has been good for consumers, he says.

Coop and Rema have been notified of rates of 4.8 billion and 7.3 billion, respectively. Coop calls the Authority’s reaction “absurd.” Rema will not comment at this time.

The notification from the Norwegian Competition Authority is preliminary and not a final decision. Companies have until April 15, 2021 to submit comments on the notice.