What's Happening?
France's competition watchdog, L’Autorité de la Concurrence, is set to review two retailer purchasing alliances, Aura and Concordis, formed in the past two years. The review aims to assess whether these
alliances harm competition, both upstream and downstream, and from a consumer perspective. Aura, formed by French grocers Intermarché, Auchan, and Casino, and Concordis, involving Carrefour and Coopérative U, are under scrutiny for their potential impact on the supply and retail distribution of consumer goods. Third parties have been invited to provide feedback on competition conflicts by March 6 for Aura and July 31 for Concordis.
Why It's Important?
The review of these alliances is significant as it addresses concerns about potential anti-competitive practices in the retail sector. Major retailers are forming purchasing alliances to pool resources and negotiate better terms with suppliers, which could lead to reduced competition and higher prices for consumers. The competition authority's assessment will focus on the impact of these alliances on the supply chain, potential price reductions, and risks of coordination between retailers. The outcome of this review could influence regulatory policies and the structure of retail alliances in France and potentially across Europe.
What's Next?
The competition authority will conduct a comprehensive assessment of the alliances' effects on the market, considering both upstream supply and downstream retail distribution. The findings could lead to regulatory actions or requirements for the alliances to make concessions to ensure fair competition. The review process will involve consultations with stakeholders and may result in changes to the alliances' operations or structures. The outcome will be closely watched by other European countries as it could set a precedent for handling similar alliances in the retail sector.
