What's Happening?
Italy's competition authority, Autorita’ Garante della Concorrenza e del Mercato (AGCM), has launched an investigation into the purchasing power of the country's large retailers. This probe is in response to the widening gap between overall inflation
and food price inflation in recent years. According to the AGCM, food prices increased by 24.9% from October 2021 to October 2025, significantly outpacing the general consumer price index's 17.3% rise. The investigation will assess how large-scale retail chains exercise their buying power, including through buying groups and cooperatives, and the impact on suppliers and consumer prices. The AGCM aims to understand the role of private-label products and fees charged to suppliers for services like product launches and promotions.
Why It's Important?
The investigation highlights the growing concern over the influence of large retailers on food prices, which can have significant implications for both suppliers and consumers. If the investigation finds that retailers are using their buying power to unfairly influence prices, it could lead to regulatory changes aimed at promoting fair competition and protecting smaller suppliers. This could also impact consumer prices, potentially leading to more affordable food options. The outcome of this investigation could set a precedent for similar actions in other countries facing similar inflationary pressures.
What's Next?
Stakeholders have been invited to submit feedback to the AGCM by the end of the month, which will be crucial in shaping the investigation's findings and potential regulatory actions. The AGCM's findings could lead to increased scrutiny of buying groups and alliances in other European countries, as seen with recent actions by the French competition watchdog. Retailers may need to adjust their business practices to comply with any new regulations that arise from the investigation.
