The analysis carried out by the competition authority revealed some concerns about the effects that this operation could have on competition on the local retail market for consumer goods, primarily food and on the national market for suppliers purchases of the same
products.
The proposed commitments focus on implementing procedures that establish rules for listing and delisting suppliers within the Mega Image/Profi network, whether they sell food or nonfood products.
“This is the first time that we impose listing/delisting conditions given the scale of the transaction and the entry into force of the European Directive on unfair trading practices in the supply chain, transposed by Law 81. Therefore, it is crucial that all companies supplying products to the two retail chains send us their observations on the commitments proposed by Mega Image. We will carefully review all comments received and evaluate the commitments proposed in order to ensure a fair competitive environment for all parties involved”, said Bogdan Chiritoiu, President of the Competition Council.
Thus, Mega Image commits to applying a procedure to all Mega Image and/or Profi suppliers establishing the conditions for access to the stores of the two networks, as well as the criteria they must meet to avoid being delisted. Furthermore, clear delisting deadlines will be established, along with the obligation to notify suppliers.
At the same time, Mega Image will implement a special procedure for the relevant suppliers, namely those suppliers whose products account for over 20% of their turnover with the two networks involved. Thus, Mega Image commits not to delist/remove their products from the network, except under clearly defined conditions, including legal provisions, or if the products become irrelevant on the market due to a significant drop in demand.
The procedure for all suppliers will be applied indefinitely and the procedure for the relevant suppliers will apply for a period of two years from the completion of the transaction and will be updated after the first year.