Martijn van de Hel was interviewed by the Financieele Dagblad about the intensified negotiations between supermarkets and food producers. While suppliers say they need to raise their prices, supermarkets want to buy cheaply in order to keep grocery prices down.
Negotiations have been intensified for over a year. European supermarkets have joined forces in purchasing organisations to strengthen their position against large A-brand producers.
According to Martijn, European supermarkets are free to cooperate. ‘Regulators assume that this will lead to lower prices for consumers. As long as there is sufficient competition in the domestic market, supermarkets can do this.’ However, the cooperating supermarkets may not have more than a 15% share of the European purchasing market and the Dutch sales market. Because the burden of proof lies in principle with the complaining party, it can be difficult for suppliers to challenge the cooperation between supermarkets before the European Commission. ‘It is up to suppliers to prove that the purchasing cooperation is reducing their range.’
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