European Retail Demands Investigation into French Price Agreements

The protest targets the so-called ‘Loi Descrozaille’ or ‘Egalim 3’ law, which was adopted earlier this year by the French parliament. “This law prevents retailers and wholesalers from seeking better purchasing conditions on the European internal market,” says Christel Delberghe, Director-General of EuroCommerce. 

The updated law includes tightened agreements between French producers, intermediaries, supermarkets, and consumers of food products. It thus leads to binding arrangements for French livestock farming and agriculture, not only concerning prices and tariffs but also quality and quantities. 

This essentially maintains the power balances and trade practices within the French national food chain. The law imposes specific rules regarding pricing, promotions, and contractual relationships among the various players in the food industry.

The trade organization EuroCommerce specifically complains that large European retail chains are restricted in their ability to offer price discounts and promotions to French consumers. Furthermore, they face obstacles in their Europe-wide purchasing practices. 

The European Union has in recent years allowed the French system of national price agreements (Egalim). According to Brussels criteria, this system hardly causes market distortion. Brussels must now once again subject it to a thorough investigation.