03.05.2012

Finnish government to increase competition in the retail trade

Major Finnish retail chains use their power in questionable ways, according to a report by the Finnish Competition Authority.

According to a recent report by the Finnish Competition Authority on buying power in the daily consumer goods trade in Finland, the large retail chains use their dominant position with respect to suppliers in several ways that may be considered questionable for sound and effective economic competition. Major issues include the use of gratuitous marketing allowances, the transfer of risks to suppliers, and increasing the number of the retailers' own brands.

According to Heinonen, the biggest stores now account for half of the food sales and spend EUR 150 million alone on price advertising in Finland. In the period 2002 – 2012, the price of food has increased by 65% in Finland. Minister Ihalainen has stated that the government is committed to healthy competition in the retail sector.

Sources: Nykypäivä, Parliament of Finland