Food prices under the microscope: who really benefits?

Food prices under the microscope: who really benefits?

Today the Fairness Office presents its activity report for 2024, which refers to 225 inquiries and 239 complaints from the previous year. However, Rainer Will, managing director of the trade association, puts the numbers into perspective by emphasizing that the complaints only accounted for 0.24% of more than 100,000 companies. The fairness office, which was created at the suggestion of the food trade, is viewed positively by the industry. Will explains that despite tough negotiations, the food retailer has never earned “a pound of money” and adheres to the legal requirements. He also points out that the report not only highlights the problems, but also confirms the long-standing and proven cooperation between suppliers and retailers, which is particularly important in times of crisis ots.at reported.

Price increases under the microscope

At the same time, the Federal Competition Authority (BWB) is examining pricing in food retail. In the most comprehensive industry investigation that the BWB has ever carried out, over 700 trading companies and 1,500 suppliers were examined. The results show that there was no evidence of price fixing in the observed period 2022-2023, but the increase in food prices remains a pressing issue. This is also clear in view of the high inflation, which peaked at 17% in January. The BWB notes that large price differences between different countries are noticeable, especially among multinational providers. Companies like Nestlé and Mondelez negotiate prices differently, which leads to a higher burden on Austrian consumers profil.at reported.

The BWB also highlights unfair business practices, which are worrying given the market dominance of major players such as Rewe, Spar and Hofer. These companies control 91% of the market and use their power to undermine fair conditions for suppliers, according to BWB. The Fairness Office report reveals similar problems, such as unilateral contract changes or short-term order cancellations. In order to counteract these strict practices, the first applications to the antitrust court are expected, which will make legal clarification necessary for smaller suppliers.