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German competition authorities demand price increases

Press Release   •   Sep 15, 2000 16:41 CEST

Somewhat contrary to normal practice, the German competition authorities have demanded that some of the large multiples, Aldi, Lidl and Wal-Mart, increase prices on a range of products.

According to Wall Street Journal Europe, the authorities accuse the American Wal-Mart and the German Aldi and Lidl of exploiting their financial muscle to sell basic products such as milk, sugar and flour at below cost price – a practice which is illegal in Germany.
The competition authorities argue that the low prices hurt the small and medium-sized shops, which are unable to compete on price. In the longer term, the authorities claim that this will weaken competition in the market and lead to higher prices.