19.05.2025 | Luxembourg competition authority
On May 19, 2025, the Luxembourg competition authority issued an opinion on bill number 8472 concerning opening hours in the retail and craft sectors, requested by the Minister of Economy, SMEs, Energy, and Tourism. The authority expressed its support for the reform, provided that certain recommendations are taken into account.
The proposed relaxation of legal opening hours is expected to enhance competition in the relevant markets and improve economic welfare. Consumers stand to benefit from increased competition among retailers regarding opening hours, allowing them to shop at times that minimize their opportunity costs.
Retailers are also likely to gain efficiency from the proposed changes, such as smoothing out peak shopping times. Additionally, they could see an increase in sales volumes and improved competitiveness against German, Belgian, and French competitors, as well as online commerce.
However, the authority highlighted two potential risks to the legislator. The first risk is that the maximum duration of Sunday work (four hours) may hinder retailers' ability to fully capitalize on the proposed doubling of legal Sunday opening hours, thus limiting the anticipated benefits of the reform. The authority suggests that any relaxation of opening hours should be accompanied by a liberalization of Sunday work regulations.
The second risk involves the requirement for exceptions to legal opening hours to be agreed upon through collective bargaining agreements, which could inadvertently favor larger retailers over smaller competitors. This could accelerate market restructuring, reallocating sales towards larger retailers and increasing their market power. Therefore, the authority recommends that the legislator consider alternative means of employee protection that ensure a level playing field for all retailers.
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