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The competition commission has launched an investigation against 16 retailers and wholesalers.
Retailers such as Landi, Manor, Valora, and Spar are targeted by the competition commission due to potential deals.
The competition commission sent a message on Thursday. “Weko is investigating a possible cartel of commercial companies.” House searches were carried out at various companies. The focus is on 15 wholesalers and retailers, as well as the payment service provider Markant. They reportedly agreed to achieve a common goal: Providers should collect their monetary claims through Markant. If a supplier did not do this, it was threatened: all 15 wholesalers and retailers would take their products off the shelves. Some of the fees were for distributors.
The Markant is called a mediation AG for trade and industrial goods. It is headquartered in Pfäffikon SZ, operates in ten locations in fourteen countries and employs more than 1,000 people. It has its origins in Germany in the 1950s, when 20 distributors together founded a chain. In 1996, Markant became a Swiss law foundation. Teams up with independent distributors to achieve economies of scale together – purchasing goods is processed more efficiently.
Many of the better-known names in Swiss retail are affected. However, they are not the biggest names, but rather those looking to connect to Markant for economies of scale. Among others, there are retailers such as Landi, Volg and Cadar, all of which belong to the agricultural giant Fenaco. Or the two groups of department stores Manor and Loeb. In addition to the retail chain Spar, the kiosk operator Valora and the pharmacy chain Müller Handels AG. The Swiss giants Migros and Coop, as well as the German competitors Aldi and Lidl, are absent. But Migros’ subsidiary Saviva is also affected. Supposedly damaged suppliers manufacture everyday goods: drinks, food or hygiene items.
In May 2020, it was learned that the Promarca brand products organization had filed a complaint. It was about connecting Coop with Markant. If it came to that, for fear of suppliers, they would have to pay much higher fees: up to 2 percent of sales. What suppliers think of him was made public in the “Sunday newspaper.” One manager spoke of “breaking his neck”, another of a “disaster”. However, based on industry information, several announcements were sent. You can listen to actual threat letters that providers have received. And the rates have increased in recent years.
No. For the companies affected, they are a massive interference in their rights. But for the competition regulator, they have been part of the normal course of events since they were given the authority to do so in 2004. By connoisseurs’ estimates, two-thirds of studies in the last ten years have resorted to this method. However, house searches are a sign: the competition authorities are fairly certain that they will find more material; otherwise, a search cannot be warranted.
Merchants are not prohibited from having their suppliers resolve their money claims through a specialized company. And you can’t force retailers to put a product on their shelves. You can still decide for yourself, Weko has nothing to say about it. But in this case you are investigating a different suspicion. That a few things came together: 15 retailers and wholesalers, each of which carries considerable weight in itself. They put great pressure on providers to handle their monetary claims through Markant. They supposedly do this together and coordinate it. Markant demands high fees and increases them. Some of this went back to the dealers as a bribe.
According to information from Weko himself, the current investigation may take another two years. Any decision can be taken to the Federal Administrative Court. And from there you can get to federal court. The whole thing can drag on for a long time.
