Retail Chains – Abuse of Buyer Power The Irish Experience. William Prasifka Chairperson, The Competition Authority 11 November 2009. Grocery Reports. The Grocery Monitor Project Report 1: The Structure and Operation of Grocery Retailing Report 2: Price Trends
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Retail Chains – Abuse of Buyer PowerThe Irish Experience
Chairperson, The Competition Authority
11 November 2009
The Grocery Monitor Project
Retail-related Import and Distribution Study
“The forced payment of up to €160m in ‘Hello Money’ to large supermarket chains by Irish suppliers is jeopardising thousands of Irish agri-business jobs”
Member, Irish Parliament
Proposal to introduce:
Key Objective : Protect Suppliers from
The Competition (Amendment) Act 2006 prohibits
These prohibitions are subject to a competition test
Competition (Amendment) Act 2006 never been used
Will an Ombudsman change this?
Different competitive dynamics
Has the UK Supermarket Code been effective?
The Code will “do a lot of harm by trying to do a little good”
If this is the problem, what is the solution?
Changing the rules - Regulation? Ombudsman?
Will Result in:
Those with buyer power changing behaviour
Only effective remedy is new entry
Irish planning laws restrict entry
Attempts to enter Irish market
Finally opened 27 July 2009
And Then What Happened ?????????
The IKEA Effect