Norway's competition watchdog has fined the country's top three grocery store chains a combined NOK 4.9 billion (€420 million) for breaking antitrust rules in a way which may have led to higher prices, the regulator has said.
The decision was in line with a preliminary ruling made by the Norwegian Competition Authority this year.
"The illegal collaboration has weakened competition between the grocery chains for many years," the authority's director general Tina Soereide told a press conference.
"Consumers may have experienced higher prices as a result of this," she added.
Grocers Deny Wrongdoing
The three companies – Norgesgruppen, REMA 1000 and Coop – denied any wrong doing.
They said in separate statements on Wednesday (21 August) they would appeal the ruling.
The case centred on how the companies used so-called price hunters to survey rivals' stores and allowed those surveyors access to their own outlets.
While the companies said the practice boosted competition, the regulator said it instead had stifled corporate rivalry.
Norgesgruppen CEO, Runar Hollevik, stated, "We completely disagree with the competition authority's conclusion. If you want to be the cheapest, you have to check the prices in the market, this is how it is in all industries. [...]
"The industry standard, which has been entered into in full public view and in consultation with the consumer authorities, has led to lower food prices. We have explained this thoroughly in our response to the Norwegian Competition Authority. That is why we do not understand why the supervisory authority does not put the case aside."
Penalty
Top retailer Norgesgruppen was fined NOK 2.3 billion (€200 million), while REMA 1000 and Coop received penalties of NOK 1.3 billion (€110 million) each.
Coop said in its statement that the ruling was incomprehensible.
"We will appeal the Norwegian Competition Authority's decision and, if necessary, pursue this matter legally. Until the case is finally resolved, which will take time, it is completely wrong to speculate on any consequences," added Philipp Engedal, CEO of Coop Norge SA.
In 2020, the Norwegian Competition Authority said the three firms faced fines totalling a record NOK 21 billion (€1.8 billion), accusing them of cooperating in ways that inflated prices.
However, earlier this year it said the infringement was less severe than initially thought, and cut the proposed penalty to NOK 4.9 billion crowns.
News by Reuters, additional reporting by ESM.
