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23.09.2024 | 🇳🇱 Dutch competition authority
The Netherlands Authority for Consumers and Markets (ACM) has imposed an order on cheese producer Royal Lactalis Leerdammer (Lactalis Leerdammer) for violating the Dutch Act regarding unfair commercial practices in the agricultural and food supply chain. Lactalis Leerdammer is prohibited from unilaterally changing the milk price, following a complaint from a supplier association of dairy farmers.
Lactalis Leerdammer collects milk from dairy farmers daily and turns it into cheese. The supplier association Leerdammer Collectief (LVLC) has raised complaints about Lactalis Leerdammer's unilateral changes to the supply agreement, particularly regarding setting the price each month. ACM has ordered Lactalis Leerdammer to amend its supply agreement to include a transparent and objective pricing system, subject to approval by milk suppliers.
ACM found that Lactalis Leerdammer violated the prohibition on unilateral changes to supply agreements by informing dairy farmers of the milk price each month without prior agreement on how the price is determined. Lactalis Leerdammer must align its supply agreement with the Dutch Act within three months, potentially by introducing a transparent pricing system to ensure clarity and verification for suppliers. Failure to comply may result in penalty payments of up to 1,050,000 euros.
The Dutch Act aims to empower farmers, growers, and fishermen against larger market players by prohibiting unfair commercial practices. Suppliers are encouraged to report non-compliance with the rules to ACM for investigation and enforcement.
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