GVH noted that Spar Magyarorszag had committed to launching a HUF 1.7bn programme to boost the volume of local suppliers' products on its shelves after the watchdog found the retailer had violated rules by requiring suppliers to pay fees in a probe finished at the end of 2020.

CJEU 'humiliates' Hungarians with Spar ruling - GVH head

A recent ruling by the Court of Justice of the European Union (CJEU) in favour of supermarket chain Spar "humiliated" Hungarians and showed the court put profit ahead of affordable staples, Csaba Balazs Rigo, the head of the Competition Office (GVH), said in an interview with daily Magyar Nemzet published.

In its ruling, issued earlier in September, the CJEU said that price caps Hungary's government earlier mandated for staples such as sugar, flour, cooking oil, pork and milk, to keep inflation down "undermined fair competition" and were contrary to EU law. The ruling was made after Spar Magyarorszag contested a fine for violating rules on inventory levels for the affected products.

Rigo told Magyar Nemzet that a follow-up probe GVH had launched to determine whether Spar Magyarorszag had complied with voluntary commitments to expand its local supplier base was unrelated to the CJEU ruling.

Meanwhile, Brussels Takes Side of 'Price-Gouging Multinationals' – Minister

National Economy Minister Marton Nagy said Brussels had sided with "price-gouging", "profit-hungry" multinationals, instead of standing with families, commenting on a ruling by the Court of Justice of the European Union (CJEU).

Mr Nagy said the behaviour of supermarket chain Spar, the European Commission and those advocating in the case "ran counter to the interests of Hungarian consumers". He added that the government would take a position for lower prices for Hungarian families "until the end".

In the ruling, the CJEU said price caps and inventory requirements for staples the government had mandated to bring down inflation undermined fair competition and were not proportionate.

Mr Nagy said the "real reason" for Spar's legal attacks on Hungary was the company's own declining position, pointing to Spar Magyarorszag's low efficiency and higher costs compared to its competitors. Instead of taking steps to improve efficiency and competitiveness, Spar is trying to use the court to recover "unfair profits", he added.

Mr Nagy noted that government measures had helped to bring down food inflation to 2.4pc, the latest data show.

He said companies that wanted to continue to do business in Hungary had to comply with the rules and take into consideration the interest of Hungarian consumers. Businesses that don't respect Hungarian consumers and overprice their products have no place in the Hungarian economy, he added.

The government will continue to use all means to take decisive action against "unjustified extra profit" and behaviour that "disrespects and harms" Hungarian families, he said.

Source: 
MTI - The Hungarian News Agency, founded in 1881.

*********************************

You're very welcome to comment, discuss and enjoy more stories via our Facebook page: 
Facebook.com/XpatLoopNews + via XpatLoop’s groups: Budapest Expats / Expats Hungary

You can subscribe to our newsletter here: XpatLoop.com/Newsletters

Do you want your business to reach tens of thousands of potential high-value expat customers? Then just contact us here!