24.02.2025 | Dutch competition authority
The Netherlands Authority for Consumers and Markets (ACM) has issued a warning to several dog food suppliers for their attempts to influence retail prices, which is against competition laws. This practice has led to artificially high consumer prices, affecting dog owners who are seeking fair pricing for their pets' food.
ACM has specifically warned nine companies and has communicated the rules to many others in the industry. The authority is set to monitor compliance among these suppliers. Reports indicate that some producers are also manipulating prices through wholesalers, which is prohibited. Violators could face fines of up to 900,000 euros or 40% of their turnover.
Martijn Snoep, Chairman of ACM, stressed the importance of allowing retailers to set their own prices without supplier pressure. He highlighted that dog owners are often willing to pay more for quality products, and suppliers should not exploit this willingness.
To ensure fair competition, suppliers are only permitted to provide non-binding price recommendations to retailers. They cannot enforce adherence to these prices or influence retailers through wholesalers. ACM has created a checklist to help suppliers and retailers understand the rules regarding recommended retail prices.
By issuing a warning rather than immediate penalties, ACM aims to encourage compliance and prevent future violations. The authority is focused on addressing the root causes of such practices, including a lack of awareness about competition rules.
ACM encourages anyone suspecting illegal price influence by suppliers to report their concerns to the authority.
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