Heavy fine for 16 retailers including Manor and Landi

The Competition Commission (Comco) has fined sixteen retailers, including Landi, Loeb, and Manor, 28 million francs for illegal price fixing in a purchasing partnership with Markant, it announced on Tuesday.

Retailers currently purchase everyday consumer goods from Swiss and international suppliers through Markant, a company based in Pfäffikon (SZ). It handles financial transactions and price and discount negotiations for retailers. This practice is not contested by Comco, as it allows for lower prices that ultimately benefit consumers.

However, the authority is challenging another practice by Markant. To supply retailers, suppliers must purchase a package of services from the Schwyz-based company, which is becoming increasingly expensive. If they don't accept these conditions, the retailers then take collective action to force them to give in. These measures can go as far as removing the products from the shelves, explains Comco. Markant then reimburses the 16 retailers for a portion of the fees collected from the suppliers, without informing them.

For Comco, this practice and the accompanying collective measures distorted competition among suppliers. The authority therefore considers this to be an illegal agreement on prices during purchasing. This justifies the 28 million fine imposed.