Agri, Food & Retail

Agriculture

Agriculture, horticulture and fisheries are high on the agendas of politicians and competition authorities in the Netherlands and the European Union. These sectors are subject to specific European regulations that allow agriculturalists and fishermen to bundle production in producer organisations (POs). Farmers, agrarians and fishermen often set up cooperatives for this purpose, but they are still expected to observe the competition rules, especially in contacts with other POs, cooperatives, intermediaries or commercial traders. Politicians in the Netherlands and European Union have suggested to give farmers, agrarians and fishers more freedom to work together, but competition authorities are not exactly thrilled by the idea at the moment. Although the Authority for Consumers & Markets does welcome sustainability initiatives (for environmental and animal welfare purposes) such as compliance marks and certification, the cartel prohibition (occasionally) still forms a barrier to launch these kind of initiatives. In order to better facilitate sustainability initiatives, the legislator is currently preparing an act to generally allow sustainability initiatives. The primary goal of the new act is to ensure that sustainability initiatives which are recognised by law will no longer fall within the scope of the competition rules.

Food

Politicians and competition authorities are also keeping a close watch on the food sector with the aim of improving the operations of the European food chain. Studies are being conducted with this purpose in mind in various European countries. Branded products and private labels continue their struggle for retail shelves. The fight over shelve space in supermarkets frequently leads to conflicts between producers and retailers, which often involves the invocation of competition rules. A code of conduct has been enacted in the Netherlands to tackle unfair trading practices. At an European level, specific legislation on this issue is even being considered.  

Retail

The retail sector is moving fast, in both the food and non-food segment, largely as a result of the growing popularity of online sales. More and more producers and retail organisations are opting to sell their products through franchises, exclusive or selective distribution. That way they can retain some kind of grip on the positioning of their product. This regularly leads to proceedings with third parties about admission to the distribution network. Often (online) retailers are required to charge a fixed or minimum selling price (resale price maintenance). Other European countries are increasingly imposing fines for this practice. Of course, producers will try to get their product on the best place on the shelves (category management). Retail organisations use contracts (sectoring, destination, exclusivity) to suppress competition in shopping centers or streets. This also culminates regularly in disputes with contracting parties and rival businesses. Internet sales continue to grow steeply which raises various questions: is it allowed to completely or partly block online resale via sales platforms such as Ebay and Amazon? The Commission is aware of these pressing questions and is currently carrying out a sector inquiry into e-commerce in which it also focuses on geo-blocking. For information see www.ecommercesectorinquiry.com.

Information

More information about this subject? Don't hesitate to contact one of us:

Martijn van de Hel

T +31 20 238 20 02
M +31 6 21 210 853

Bas Braeken

T +31 20 238 20 01
M +31 6 11 592 679

Diederik Schrijvershof

T +31 20 238 20 03
M +31 6 81 364 318