The Minister of Industry is tightening in the grocery sector: will ask the Norwegian Competition Authority to investigate more often – Business



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Torbjørn Røe Isaksen (H), Minister of Industry, will present Friday the first parliamentary announcement of the government on the trade industry.

Ministry of Industry released the main parts of the report already on Thursday.

One concrete measure proposed by the Ministry of Industry is to ask the competition authority to lower the threshold for investigations in the grocery sector.

"The government will strengthen the enforcement of the competition law in the grocery sector.This is targeted action against behavior limiting competition," said the Minister of Industry in a statement.

Adds to extensive market surveillance

In the government's view, competition should be strengthened both between providers and between channels.

"The grocery market is so important to consumers that we need to move quickly," Ms. Isaksen said.

"Limited competition has major negative effects, both in terms of low efficiency, high prices and low innovation," he continued.

In addition to asking for a lower investigation threshold, the government will add that the AMF can conduct more market surveillance.

"To achieve the desired effect, we must prioritize the work of the grocery industry and we must ensure that the Competition Authority has the necessary resources," he said. said Mr. Isaksen.

He adds that he is currently working with the audit or evaluating the resources that the measure will require.

Increased concentration on purchase prices

Competition director Lars Sørgard is aware that this will have a positive effect on the competition.

"Further market surveillance and investigation of multiple possible infringements will increase competition in the grocery sector," Sørgard said.

"It's the companies themselves that are responsible for enforcing the Competition Act, but it's important to have additional resources to enforce the law," he said.

The Government indicates that the Norwegian Competition Authority has recently spent a lot of time collecting information on suppliers' purchase prices for the grocery market. The evaluation of the consequences of any purchase price difference will be a priority task of the future control, informs the Ministry of Industry and Fisheries.

39 suggestions

The government will also propose a law on good business practices and examine measures to intensify competition in the sale and distribution of grocery products.

In the new trade announcement to be officially presented to the Cabinet on Friday, the government will present 39 measures for retraining and sustainable growth of the retail trade.

"With nearly 380,000 employees, the retail sector is the largest private sector company and is for many a gateway to the labor market," said Isaksen.

In addition to grocery shopping, the trade report covers all branches of the retail trade.

The government's project to investigate a border trade barometer is one of the most important news.

Trade Barometer at the Utreder Border

– The increase in online commerce from abroad and border trade have consequences for value creation and employment in the commercial sector. We lack good statistics describing developments, so let's study the need for an annual barometer, says Isaksen.

Thus, the government will examine the need for a barometer that measures trade on the other side of the border better than today.

Statistics Norway's border traffic figures are very uncertain and their estimate of net sales is similar, with figures ranging from 2.5 to 18.4 billion in 2017.

The barometer will be presented on an annual basis.

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