Romanian Competition Regulator Proposes Removal Of Several Taxes In Retail

The Romanian competition regulator announced it has completed an investigation on the food products market, an analysis it started in March 2008 aimed at identifying practices that would distort the competition environment.

The regulator mainly recommends the removal of several taxes, such as the tax meant to cover expansion or store network upgrade costs, or taxes collected to cover in one way or another the risk of non-selling products.

"The Competition Council also requests the removal of the favored client clause in commercial relations between vendors and suppliers. This clause involves the existence of an agreement between vendors and suppliers, where the suppliers sell to a particular vendor at the lowest price," said Bogdan Chiritoiu, chairman of the Competition Council.

In addition, the regulator requests that the vendor receive the responsibility to allot shelf space in stores, to guarantee equal treatment among suppliers.

The investigation targeted eight categories of products, seen as having a wide impact on the consumption habits of the population. These products are milk, eggs, pork meat, poultry meat, oil, bread, processed meat and wine.

The analysis triggered investigations for potential breaches of the competition law against the companies Metro Cash&Carry Romania, real,-Hypermarket Romania, MGB Metro Buying Group, Selgros Cash&Carry, Billa, Mega Image, CDE R Interex and their suppliers.

At the same time, the Competition Council issued fines against Billa Romania, Pic and Spar, worth some EUR850,000, for incorrect information regarding the favored client clause.

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