German Antitrust Authority Focuses On Food Market Concentration
The German Monopoly Commission, an independent expert body, warns that the German food retail market is concentrating among fewer large companies. EDEKA, Rewe, Aldi, and the Schwarz Group, which operates Lidl and Kaufland, now control approximately 85% of the market. The commission notes that while short-term price fluctuations may occur, the long-term impact on consumer prices remains questionable. Suppliers and producers are expected to feel the consequences of this concentration. It remains uncertain if this market structure will prevent consumer prices from rising in the medium to long term. The Federal Cartel Office is expected to focus its investigations on the food market. The agency is examining how supermarket chains exert margin pressure on intermediaries. These intermediaries then pass costs to producers, who have limited ability to resist.
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Sources · 7 independent
“Die Monopolkommission, ein unabhängiges Expertengremium für Wettbewerbsfragen, warnt seit Jahren davor, dass sich der deutsche Lebensmittelhandel auf immer weniger große Unternehmen konzentriert.”
“The intermediaries can pass the margin pressure coming directly from the supermarket chains on to the producers, and they cannot do much to resist that.”
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