Being updated.
– Food prices are increasing and the government has taken a number of initiatives to improve competitive conditions in the grocery industry and contribute to better selection and lower prices for consumers, writes the Ministry of Trade and Industry in a press release.
On Wednesday afternoon, the ministry launched a plan with ten points to ensure a better selection and lower prices in the grocery store.
See all points further down in the case.
– No short-term impact
Economist and trade expert Odd Gisholt tells TV 2 that the points in the plan are already things that are being worked on, and that it is nothing new.
– It’s just a game for the gallery and to calm people down, he says.
These are the ten points in the government’s plan:
- The government will find out where the money goes
The government wants to find out why the price increase on certain food products is higher for the consumer than for those who make and deliver the food, and who benefits from the price increase.
- Investigate price signaling
– Before the price increases actually happen, this is communicated through the media. If actor A says it will raise prices by 10% from a certain date, why shouldn’t actor B do exactly the same? writes the government in the press release.
- Investigate how the prices are created
The government will investigate whether the negotiations on food prices with effect from 1 February and 1 July are a “stiff-legged” way of negotiating, which leads to poorer competition.
- Prohibition of price discrimination
Partly large differences in grocery chains’ purchase prices can make it more difficult for newcomers to establish themselves, according to the government.
– We have sent two proposals for consultation to regulate this, says the press release.
- Scope and effects of own brands
According to the government, own products that compete with traditional brands can be good for the selection, but:
– It can also contribute to the chains gaining greater power over the shopping basket so that consumers end up paying too much, they write.
- Scope and effects of the same actor sitting around the same table
– The chains no longer only own the stores, but increasingly also the wholesale, logistics, product and production sectors, writes the government.
They will investigate whether this affects competition.
– If in practice one sits around the whole table and controls a large part of the value chain, this can have adverse effects on competition.
- Prohibition on preventing competitors from using shop premises
– There are many examples of a shop moving out of a premises putting a stop to the wheels so that another shop cannot use the same premises. This makes it difficult for competitors to establish themselves, says the press release.
- Give the Norwegian Competition Authority greater muscle
The government will give the Norwegian Competition Authority the opportunity to intervene earlier and more widely where they see competition problems.
- Lower the threshold for when an actor is market dominant
- More money for the Norwegian Food Safety Authority
– We have strengthened the grants by 50 per cent in order to step up the work so that consumers will get a better selection and lower prices, they write.
