The president of the Autorité de la concurrence warns companies that take advantage of inflation to make “excessive profits”

2023-06-17 11:22:15

The question of corporate margins has become central in recent months, as inflation remains high despite an easing of some crisis factors at the end of 2022, in particular the explosion of energy prices in the wake of the war. in Ukraine. The President of the Competition Authority, Benoit Cœuré, warned on Saturday June 18 that companies were tempted to take advantage of inflation to make “excess profits”waving the threat of “punish them, even severely”.

“We look, and we have the instruments to sanction, even severely”said Benoit Cœuré in an interview published in the daily The Parisian on Saturday, in reference to companies that would take advantage of continued inflation to raise their prices excessively. “We have a number of very clear clues and even more than clues, facts, which show that the persistence of inflation is partly due to excessive corporate profits”detailed the former member of the executive board of the European Central Bank (ECB).

Asked about the sectors concerned, Mr. Cœuré contented himself with replying that“there are sectors that we are looking at more particularly”adding that “when we have suspicions of an agreement, we investigate”. “To companies who say to themselves, ‘as prices are rising everywhere, it will be less visible if we get along’, I tell them: “be careful, we are vigilant””he said again.

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« Vigilance »

The Competition Authority intervenes when the balance of competition is distorted and punishes anti-competitive practices such as cartels or abuse of dominant position by issuing injunctions or sanctions.

The evolution of corporate margins has not ” globally “ not contributed to the rise in inflation in France in 2022, estimated, meanwhile, at the end of April, the Governor of the Banque de France, calling however for “vigilance” in the matter.

Read also: Inflation slowed markedly in May, settling at 5.1% over one year, according to INSEE

After a record high of 34% in 2021, the margin rate for companies reached 32% last year, close to its pre-Covid level, according to the institution. The agri-food industry, energy, transport and certain service sectors are to be monitored, the Banque de France underlined at the time.

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The World with AFP

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