Carrefour plans to appeal a court ruling that ordered the French retailer to pay damages for “abusive contracts” with suppliers.
The court of appeals in Paris found that between 2005 and 2006 Carrefour obtained remuneration disproportionate to services rendered in contracts with 16 suppliers. The court has ordered Carrefour to pay EUR19m (US$25m), EUR17m to be divided between the suppliers and a EUR2m fine.
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The ruling is part of an ongoing dispute between the French authorities and Carrefour.
In 2006, the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes found that Carrefour broke competition rules in 16 supplier contracts. Carrefour appealed the DGCCRF’s findings and, in 2009, a commercial court ruled in favour of the French authorities. The company then decided to take the ruling to the court of appeal.
Carrefour said today (13 March) that it continues to refute the alleged infringements and will lodge a further appeal against the ruling.
All benefits negotiated with suppliers in 2006 were “consistent with services actually rendered”, the company insisted.
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By GlobalDataSigned partnership agreements are the result of a negotiation between two parties of their free will and acting without any constraint, the company added. As such, these agreements are lodged in the principle of free pricing, the group argued.
Carrefour also insisted that none of the 16 suppliers involved wished to take part in this legal battle, which has been pursued by the French authorities.
