Norwegian supermarkets accused of price fixing

The Norwegian Competition Authority has taken action against big businesses that dominate 95% of Norway’s supermarkets. On Wednesday, Rema, Coop, and NorgesGruppen were fined a total of NOK 4.9 billion (€418 million) for colluding on prices.

The investigation focused on price checkers, people who are hired to scan prices in one branded store and quickly transmit that information to their employees, another branded store. The price checkers had been less than discreet, openly admitting what they were up to and why.

Billions in fines dished out to Norwegian supermarkets

Tina Søreide, the head of the competition authority describes this behaviour as ‘a significant breach of the law.’ The amount of fines given out so far add up to a significant amount NOK 2.3 billion (€196 million) to NorgesGruppen, NOK 1.3 billion (€110 million) to REMA, and NOK 1.3 (€110 million) billion to Coop. The businesses were also ordered to cease any more collaboration on prices with immediate effect.

The authorities allege that the unlawful practice of sharing prices was going on from January 2011 until at least April 2018, as price monitoring became more frequent, allowing grocery store owners to stay informed on rivals’ pricing multiple times per day. Regulators stated that if one grocery chain adjusted prices swiftly, they could anticipate that other chains would do the same, making it more preferable for chains to raise prices rather than decrease them.

Norwegian shoppers going to have to wait for price drops

NorgesGruppen CEO Runar Hollevik claims that the price checking has always been transparent and that the authorities were kept updated. Hollevik expressed that price checkers have enhanced competition, rather than diminish it. The ongoing investigation and subsequent court procedures are expected to drag on for years. In the meantime, it is expected that Norwegian shoppers will have to continue putting up with elevated grocery costs.