Price squeeze? Brand article association shows Migros at Weko – the orange giant contradicts

The association of branded article manufacturers Promarca accuses the Migros price presser. He therefore filed a complaint with the Competition Commission. Migros is resisting the allegations.

Promarca accuses the Migros price presser. This contradicts: You can prove that the allegation is not true. (Icon image)

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(dpo) The Association of Branded Item Manufacturers blames Migros. According to Promarca, the retailer should have asked suppliers for an average price reduction of 10 percent without providing the usual consideration, such as advantageous product placement in shops or the co-financing of campaigns. Anyone who does not accept the price reductions must face consequences, including threatening letters, writes the “SonntagsZeitung” with reference to the Promarca managing director (article subject to a charge).

The association does not want to tolerate this any further. He therefore filed a complaint with Weko about alleged violations of the Cartel Act and misuse of buying power. At the request of CH Media, Frank Stüssi, Deputy Director of the Weko Secretariat, writes that the Competition Commission should not provide any information about advertisers and the content of advertisements. However, he confirms that Weko has received “several advertisements for the ‘Markant’ accounting system. These would now be checked.

Migros resists the accusation

A spokesman for Migros wrote to CH Media on request that Weko had given the retailer the opportunity to comment on the allegation. “Migros will be able to demonstrate that the allegation is incorrect,” said the spokesman. Migros also regards Promarca’s approach as “problematic” because its members – according to Migros mainly “large international companies” – still charge significantly higher prices in Switzerland for identical products than in neighboring countries.

As the Migros spokesman continues, the retailer regularly negotiates with large suppliers. Together with them, Migros wanted to be able to offer consumers “quality products at fair prices”.

According to Frank Stüssi from Weko, the current market observations are expected to be completed “probably in summer” – or at least to the extent that a decision can be made about the further procedure. If the Weko secretariat comes to the conclusion during the course of the market observation that there are indications of an inadmissible restriction of competition, the Weko will open a preliminary clarification. Only when it comes to the conclusion that there are really indications will Weko open an investigation.

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