05.03.2025 | Austrian competition authority
The Austrian Federal Competition Authority (BWB) has initiated legal proceedings against DM, a retail company, for alleged unfair trade practices involving demands for payments from suppliers without adequate compensation. The BWB's investigation, which began in April 2024, was prompted by reports of DM's requests for an 'OCR bonus' ranging from 1.5% to 2.5% from suppliers for digital enhancements to their stores, effective from May 1, 2024.
These demands were deemed unjustified by the BWB, as they lacked a corresponding service or benefit for the suppliers. The investigation revealed that the violations pertained to various product categories, including soft drinks, tea products, plant-based beverages, pickled vegetables, sweets, honey, cooking oils, spreads, sauces, pasta, children's snacks and drinks, and sports nutrition products.
Although DM retracted its demands, preventing any payments from being made, the BWB proceeded with its application for fines against DM for the 20 identified cases. The authority emphasized its commitment to addressing unfair trade practices, particularly in the food sector, to ensure fair competition and protect suppliers with less market power.
The Fair Competition Act (FWBG) prohibits the solicitation of payments from suppliers that are not related to the sale of agricultural and food products. The BWB's request for fines could result in penalties of up to EUR 500,000 for each violation. A legal question regarding whether simultaneous demands from multiple suppliers constitute separate violations or a single infringement is currently pending before the European Court of Justice.
© 2024 PolicyPulse. All rights reserved.
See something you like or don't like? Let us know!