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24.10.2024 | 🇸🇮 Slovenian competition authority
An antitrust agency discovered that retailers in the food supply chain offer various marketing services to suppliers, with payments for these services being relatively high and vaguely defined in contracts. Changes in consumer habits due to inflation have led to increased competition among retailers, prompting aggressive marketing strategies.
The agency, empowered by competition and agriculture laws, requested data from 23 suppliers of various food products to investigate potential anticompetitive practices in marketing activities. The study revealed that some suppliers had disproportionately high marketing costs, while others had no costs despite their products being promoted by retailers.
Contracts with provisions for rebates based on sales targets and payments for product placement raised concerns of potential reimbursements for undisclosed or ambiguously agreed services, possibly violating competition laws. Some buyers demanded payments exceeding agreed amounts for marketing services, indicating possible overcharging for promotion costs.
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