Independent retailer groupings operate in a way that promotes competition - EU competition rules should not be interpreted in different ways on a national basis - said UGAL, which represents retailer grouping interests in Brussels, this week. Regulation 1/2003, which came into force on May 1, obliges respective national competition authorities to apply Community rules relating to "agreements between companies which may affect trading between the member states".

The view of UGAL, the Brussels-based umbrella organisation of independent retailer and wholesaler groupings, is that this could lead to varying interpretation of EU legal regulations on a national basis and, as a further consequence, considerable uncertainty for the voluntary groupings with regard to their legal positioning. “Discrimination against the voluntary groupings must be prevented,” said a UGAL statement. “In any event it is vital to prevent voluntary groupings being prohibited from taking specific methods of approach which their competitors are permitted to follow, purely because these are not individual retail multiples but instead a voluntary link-up between independent companies.

“Market participants should not be discriminated against because of their specific corporate structures - which voluntary groupings undoubtedly represent - but instead only if they act in such a way that has a detrimental effect on free competition. For example, it cannot be right that prices which are standardised within a voluntary grouping for marketing reasons should be classed as anti-competitive whilst the multiple store operators are legally permitted to use this option throughout their numerous outlets.

“Providing there is sufficient competition between the market participants who are organised along differing lines, the voluntary groupings must be permitted to implement standardised marketing, distribution and pricing strategies. This is an area in which there is still a clear need for clarification - particularly including in respect of the forthcoming review of the EU Regulation on vertical agreements,” said UGAL.

The organisation claimed that “voluntary groupings guarantee free competition” and “a balance of power between the market participants (multiple store operators and voluntary groupings) can only be in the interest of free competition”.

Its statement added: “Finally, we should not underestimate the fact that there is actual competition within groupings themselves - to the benefit of the consumer.” The opening gambit of the umbrella organisation, was a major workshop staged in Brussels at the end of June, to deal with questions relating to Community competition law. Numerous representatives from the European trade, the European Economics and Social Committee, the EU authorities as well as of the national competition authorities took part and discussed specific requirements of this branch of the trade.

Documentation will be published on the UGAL website at www.ugal.org.

• UGAL members represent retail sales of euro430 billion and wholesale sales of approximately euro20bn and employ more than 3.1 million people.

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