Several grocery chains have been dissatisfied and claimed that larger grocery chains are allowed to purchase cheaper goods from suppliers than smaller players. In 2019, the Norwegian Competition Authority had a review of the purchase prices. Norgesgruppen, which owns Kiwi, Meny and Joker, among others, had in the report up to 15 per cent lower purchase prices than other grocery chains get for the same goods. The government has previously come up with measures to avoid large price differences, but has met with skepticism from the Competition Authority. Experts are also divided in their views on how such rules will turn out. After many years of heated debate, the government chooses to publish a revised regulation against price discrimination for consultation. The purpose of a ban on price discrimination is to ensure that the price differences for the goods purchased do not become too large. The government’s hope is that grocery stores will find it easier to establish themselves in competition with larger players. Kiwi owner warns of more expensive food Communications director in Norgesgruppen, Sten Rømmerud, is critical of the government’s move. – Any interference in the free negotiations and uncertainty about which discounts are legal will lead to increased food prices. We are already experiencing that some suppliers are using the debate about such a ban as an argument for increasing purchase prices, says Rømmerud to news. The Norwegian Competition Authority has also been skeptical of a ban on price discrimination, and among experts there is disagreement as to whether a ban would result in cheaper or more expensive food. – If this regulation is adopted, prices will go up, says Rømmerud. Bottom price merchant Christian Lykke is also skeptical. – All interference from politicians will only lead to more regulations, which makes it more difficult for those who are small. There are no such rules anywhere else in the world either, so I don’t think it’s necessary here either. Vestre promised several measures – Action must be taken to improve the competition situation, Vestre said on Friday morning. He also gave an update on how things are going with other measures he has previously announced to provide more competition in the grocery market. The Minister of Industry promised to continue the work the government has started. He said that the authorities will continue to check how the selection is in the stores with the grocery chains’ own brands, to assess whether measures are necessary in the long term. In addition, Vestre will assess the need to amend the Act on Good Trading Practices. The law should become more clear, according to Vestre. Vestre also promised to continue investigating how ownership and power in the grocery industry is concentrated.
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The government announces rules against price discrimination in consumer goods – news Norway – Overview of news from different parts of the country
