France’s competition regulator has imposed €12.67 million in fines on several organizations and companies involved in what it described as a long-running cartel in the organic food sector, according to a statement.
The regulator stated that these entities participated in a “single, complex, and continuous cartel aimed at allocating organic food brands between specialized organic retailers and generalist or conventional mass-market retailers.” The conduct, per a statement, distorted competition by dividing distribution channels and limiting how organic products were sold across the market.
Authorities said the anticompetitive arrangement persisted for more than seven years, spanning a critical period of growth for organic food in mainstream retail. During this time, large-scale food retailers became the dominant distribution channel for organic goods, particularly around 2016, according to a statement.
The investigation found that, in addition to the trade union Synadis Bio, several companies played active roles in the scheme. These included Greenweez, Les Comptoirs de la Bio, and ITM Entreprises, all of which were determined to have participated in the unlawful practices, per a statement.
As a result of the findings, the regulator issued fines totaling €12,6 million. Synadis Bio received the largest penalty at €10 million. Greenweez was fined €1.85 million, with the amount shared jointly and severally with its parent company Carrefour. ITM Entreprises was fined €740,000, also jointly and severally with its parent company Les Mousquetaires. Les Comptoirs de la Bio received a fine of €80,000.
The regulator emphasized that such practices undermine fair competition and can hinder consumer choice in a rapidly expanding sector.
Source: Market Screener
Dining and Cooking