– If this regulation is adopted, prices will go up, says director of communications in Norgesgruppen, Stein Rømmerud to news. 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. Photo: Terje Pedersen / NTB Kiwi owner warns of more expensive food – 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. 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, he says. Stein Rømmerud in the Norgesgruppen is skeptical Photo: Ola Hana / news Vestre promised more measures Jan Christian Vestre invited the grocery chains to a seminar on Friday, where it emerged, among other things, that a new proposal to ban price discrimination will be sent for consultation. – Action must be taken to improve the competitive 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. Coop: – Coop’s most important move is, in contrast to Norgesgruppen, positive to new rules against price discrimination. – We are positive that the ministry is now coming up with a new proposal for regulations on price discrimination. In our opinion, this is the most important move to improve competition, says Philipp Engedal, managing director of Coop Norge. He looks forward to sharing his input in a meeting with the minister in the new year. Rema 1000 was also present at the seminar. Kårstein Eidem Løvaas, head of business policy at Reitan Retail, calls for a ban on price discrimination also for larger players. – It would have had a positive effect on prices in stores from day one, says Løvaas. – We see helping small players to obtain conditions that make it possible to establish themselves in the Norwegian grocery market as good for Norwegian consumers, but it will only have an effect in the long term, he elaborates. Want to keep the politicians out For the Bottom Price merchant, it is important to keep the politicians out of the industry, and not let them introduce rules that go beyond the competition. – I am afraid that, when they see that things are going wrong, they would rather come up with new regulations than remove those they have introduced which are causing the problem. Then it will be more difficult for small or new players, not easier, says Lykke.
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The government announces rules against price discrimination – news Norway – Overview of news from different parts of the country
