18.02.2025 | Hungarian competition authority
The Hungarian competition authority, known as the Gazdasági Versenyhivatal (GVH), has successfully intervened in the operations of SPAR Hungary, leading to significant benefits for local suppliers and the creation of new jobs. This action stems from a 2020 investigation that revealed SPAR's abuse of its substantial market power to the detriment of Hungarian suppliers.
In December 2020, the GVH found that SPAR had imposed unreasonable fees on suppliers through its bonus system, which was a barrier for local products to reach store shelves. As a result, the GVH ordered the implementation of a comprehensive support package worth approximately 1.7 billion HUF aimed at assisting domestic suppliers and small and medium-sized enterprises (SMEs). The recent follow-up investigation confirmed that SPAR had met the objectives of this intervention, although the company failed to adequately document its compliance, resulting in a fine of 5 million HUF.
As part of the GVH's intervention, SPAR committed to establishing six regional supplier centers across Hungary to enhance sales opportunities for local producers. The company pledged that 90% of the opportunities in this regional system would be allocated to new micro, small, and medium-sized suppliers. Additionally, SPAR agreed to provide training in quality auditing, logistics, warehousing, and marketing to support its suppliers.
The follow-up investigation revealed that SPAR exceeded the required budget for the regional supplier system and established seven centers instead of the mandated six. Between 2021 and 2023, over 100 new local producers gained access to sales opportunities and marketing support, surpassing the minimum requirement of 90% for new suppliers. Furthermore, SPAR created 23 new jobs related to the regional supplier centers.
However, the GVH noted that SPAR had not fully complied with its documentation obligations for 2022 and 2023, leading to the imposed fine. The GVH emphasizes the importance of strict adherence to its decisions and warns that incomplete compliance may result in significant penalties for companies.
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