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ARTICLE · 28 SEPTEMBER 2015

Food For Thought: Competition And Pricing

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This week, the spotlight is on key regulatory risk issues currently faced by companies in the food and drink sector.

European UnionAntitrust/Competition Law
John Cassels
John Cassels
Stefanie Greifeneder
Stefanie Greifeneder
Jessica Burns
Jessica Burns

This week, the spotlight is on key regulatory risk issues currently faced by companies in the food and drink sector. Today, we focus on competition and pricing.

Call to break retail oligopolies

Jean-Claude Juncker, President of the European Commission, has warned small groups of food retailers with market power that they may face competition law action at EU and national level.

Juncker's comments were made in response to recent complaints by farmers over the plummet in milk prices (which in some regions costs less than water). Farmers complain that 'retail oligopolies' are exerting their market power (and negotiating power) unfairly to keep prices low and that this is making agriculture unsustainable. They want the authorities to allow them to set milk prices.

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