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A recent report from the Norwegian Competition Authority shows that the large purchasing differences in the grocery industry were not an isolated occurrence.
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The summary shows the differences in purchase prices that supermarket chains Norgesgruppen, Coop and Rema received from some of the largest suppliers in the country in 2018 and 2019.
The Norwegian Competition Authority says the report confirms the findings presented in 2017.
– The survey is of purchase prices for 2018 and 2019, so it is based on figures prior to the publication of the differences in purchase prices from last year. The survey shows that the results we present were not an isolated case, says Project Grocery chief Sigurd Birkeland, who continues:
Audit results released Thursday morning show that differences in purchase prices vary somewhat from year to year for the individual supplier.
– Differences in purchase prices are not necessarily in conflict with the Competition Law, since the Law does not establish a general prohibition against price discrimination. A concrete evaluation must be carried out. But price discrimination that restricts competition to the detriment of consumers can be contrary to competition law, says Birkeland.
The figures should have been released early this fall, but have been postponed due to the crown crisis.
The audit was surprised
When similar figures were presented last year, that time for 2017, the Norwegian Competition Authority stated that it was surprised by the large differences in purchase prices.
The differences were so great that the Authority believed that it was possible that this could damage competition and, therefore, the offer to the consumer.
At the time, the summary showed that the largest player, Norgesgruppen, generally received much better prices than its competitors at Coop and Rema and, in cases, purchase prices up to 15% lower.
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Investigation
At the same time as the Norwegian Competition Authority’s task force called “grocery project” closely follows the grocery industry, the Authority is also working on investigative work after raids were carried out in Norgesgruppen, Lilleborg (Orkla), Mondelez (Freia).
The background was the suspicion of a competition law infringement.
Rarely has there been so much willingness to do something about the competitive grocery market as now. At the same time as the various audit processes are being carried out, a report will soon be submitted to the Storting to the Storting Trade and Industry Committee, where various intervention measures have been proposed.
In addition, a new grocery inspection has been established.
The case is being updated.