Face - Contents - Bottom - Previous/Next "Nordic Food Markets" Recommendations The following recommendations are developed with a Nordic perspective. Since the structural as well as regulatory circumstances differ the recommendations have different impact and importance in individual countries. The recommendations are aimed at both participants in the market, authorities and legislators. - Retailers' access to new shop sites
The composition of shops in the retail sector has changed towards more discount shops and hypermarkets. Access to buildings or building sites is essential for new retailers. Therefore, planning authorities should acknowledge the value of competition for consumers and only limit entry of new retailers where there are objective reasons for it. Application procedures should be transparent and applicants should be ensured possibility to appeal.
- Producers’ access to the shelves
Agreements between suppliers and retail chains have become more complex. Certain arrangements in such agreements may have foreclosing and other anticompetitive effects. The agreements may include discounts, loyalty bonuses, slotting payments, marketing support, gifts and similar favours, and the competition authorities will include all these factors in their assessments. Market participants should be aware that agreements or practices which can be shown to limit competition can constitute a breach of competition rules. Central to the assessment are the effects of the practise, not the label or form it takes.
- Mergers
The Nordic food markets are concentrated, both at the retail and at the industry level, and there are examples of barriers to entry at both levels. Such structural conditions can lead to weak competition. The competition authorities will, therefore, consider mergers and take-overs carefully and act where these might result in a substantial weakening of competition
- Better consumer information
The Nordic consumer ministers have pointed to the need for better, clearer and more understandable consumer information. Besides helping consumers, this would also level the playing field for more competition. EU/EEA rules for displaying unit prices should be vigorously enforced. National consumer agencies should facilitate better consumer information, including findings on quality and safety.
- Common food regulation
Production and sale of food is – and should be – regulated in order to protect consumers' health and welfare. Country-specific food regulation may hinder trade between countries and limit competition. It is, therefore, important that the gains of such regulation are balanced against the loss for consumers in terms of higher prices and a more limited choice. As much regulation as possible should be common EU/EEA regulation.
- Cans and bottles
All Nordic countries have established well-functioning systems covering both refillable and non-refillable containers. However, a large part of cans and bottles bought in one country and consumed in another is wasted. The Nordic governments and/or responsible agencies should therefore, as a first step, consider agreements on exchange of deposits for non-refillable containers (which are not normally transported back to the producer). The best long-term solution would be common recycling systems covering a larger group of countries.
Version 1.0 December 2005 • © Danish Competition Authority.
Published by the Danish Competition Authority, http://www.ks.dk/
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