France’s competition regulator has imposed a total of €12.7m ($14.7m) in fines on four organic retail associations over claims of price collusion.
Synadis Bio, Carrefour’s online retailer Greenweez, Les Comptoirs de la Bio and ITM Entreprises, which is owned by supermarket chain operator Groupement Mousquetaires, have all been hit with individual penalties.
The Autorité de la Concurrence suggested in a statement today (16 April) that they were involved in a “single, complex and continuous” arrangement that distributed organic suppliers’ brands between specialist organic stores and general food retailers.
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According to the authority, the aim was to prevent the same brands from being sold through both channels at the same time, limiting direct comparisons on products and prices that could have pushed prices lower across the market.
In the case of Synadis Bio, the regulator claimed it started a “collective strategy” back in 2018 to prevent the sales of organic products in both channels.
The authority said the association added a clause requiring members to stock at least 95% of packaged organic food products sold exclusively through specialist organic stores.
It added that the conduct lasted more than seven years, during a period of “strong growth” in France’s organic food market and a shift towards conventional supermarkets.
Organic food consumption in France increased from €3.7bn in 2010 to €13.2bn in 2020, while specialist organic retailers lost market share as supermarket groups broadened their organic ranges, according to the statement.
Synadis Bio received the largest penalty of €10m. Greenweez was fined €1.85m in conjunction with its parent Carrefour.
ITM Entreprises was fined €740,000 jointly with Les Mousquetaires. Les Comptoirs de la Bio was fined €80,000.
Asked for comment by Just Food, Groupement Mousquetaires said: “We will review this decision with a view to a potential appeal. The Groupement remains committed to providing access to organic, high-quality products across its entire network, in line with customer expectations.”
The other three organisations had not responded to Just Food’s request for comment at the time of writing.
The authority said Greenweez, Les Comptoirs de la Bio and ITM Entreprises each had an active role in the arrangement.
