Three French retail alliances face scrutiny

Three French retail alliances face scrutiny as regulators target procurement practices just weeks before annual supplier negotiations begin.

• The Autorité de la concurrence notified a report to members of the Aura alliance, including Intermarché, Auchan, and Casino, identifying practices that may restrict competition.
• Regulators examined both supply and retail markets, concluding the practices lacked sufficient economic progress to offset potential market harm.
• Parties now have a two-month window to present observations and propose corrective measures before the regulator takes a final decision.

Regulators in France have targeted the Aura purchasing alliance, which groups retail giants Intermarché, Auchan, and Casino, over suspected anticompetitive practices, 20 Minutes reported.

The Autorité de la concurrence announced an analysis procedure in January to examine two major retail purchasing alliances, Aura and Concordis, which includes Carrefour and Coopérative U. Thursday’s move follows the regulator’s decision to notify a report to Aura members after identifying several practices that could harm competition on both supply and retail markets.

The regulator said that these practices were not compensated by a sufficient contribution to economic progress. The findings do not prejudge the final decision of the Autorité de la concurrence college, leaving a two-month period for parties to present observations and propose corrective measures.

Groupement Mousquetaires and Intermarché confirmed they will review the report and respond during the contradictory procedure.

“Ces alliances à l’achat concernent uniquement les plus grandes entreprises de taille intermédiaire (ETI) et les multinationales de produits de grandes marques”, Intermarché told 20 Minutes.

The distributor added that these purchasing alliances help “proposer des prix plus compétitifs aux consommateurs” and contribute “ainsi à la préservation du pouvoir d’achat des Français”. Auchan and Casino declined to comment when contacted by the publication.

For several years, large retail groups have formed alliances to increase bargaining power against major agribusiness multinationals. Critics and French politicians often accuse retailers of using foreign European purchasing alliances to bypass French laws at the expense of farmer compensation, an allegation retailers deny.

Annual commercial negotiations between supermarkets and suppliers, which determine retail prices for manufacturer brands, are scheduled to run from December 1 to March 1. These talks occur as energy costs rise and the agricultural crisis continues.