Belgium and seven other EU Member States have urged the European Commission to tackle multinational corporations, arguing they limit trade within the single market to inflate prices.
On Friday, 27 European Ministers responsible for the Internal Market and Industry convened in Brussels. The eight nations, led by the Netherlands, addressed issues regarding varying prices within the common market for identical goods. In particular they focused on the territorial restrictions imposed by international suppliers, restricting traders and supermarkets from sourcing products from their preferred supplier.
Belgium’s Minister for the Economy and Labour Pierre-Yves Dermagne highlighted the mechanisms by which companies artificially increase prices. These practices are especially detrimental to smaller EU states. He called for new regulations to protect consumer purchasing power.
Last year, the European Commission estimated this issue cost European consumers over €14 billion annually. These practices also limit the range of products available in certain Member States.
“Citizens can see they are not benefiting from the single market,” declared Margrethe Vestager, the European Commissioner in charge of Competition, during the ministerial meeting. “The cost of living crisis is a reality for many families.”
But Vestager warned that the problem is not easily resolved: “Competition rules can be invoked – food product manufacturer Mondelez was fined €337.5 million just last Thursday – but only in cases of dominance abuse or anti-competitive agreements.”
Alongside the Netherlands and Belgium, the Czech Republic, Croatia, Denmark, Greece, Luxembourg and Slovakia joined the call for the prohibition of unfair business practices if they lead to discrimination against traders because of their location. They also want the Commission to look more closely at how different languages used on labels and packaging prevent certain products from being sold across all Member States.
