Norway proposes new rules to curb grocery giants' power over wholesalers
The Norwegian government unveiled a draft regulation forcing large grocery wholesalers to offer fair terms to smaller retailers and to prevent favoritism toward their own private-label brands.
Cecilie Myrseth presented a new regulatory package aimed at improving competition in Norway's grocery sector, dominated by Norgesgruppen, Coop and Rema. The draft regulation requires the three major wholesalers to sell goods to small retailers on reasonable conditions and to avoid giving preferential treatment to their own private-label ranges. Complementary changes to the good-practice law would ban imitation of other brands, demand clearer written agreements and ensure that supplier discounts are reflected in shelf prices.
The Competition Authority will oversee compliance and may impose penalties of up to one percent of a company's revenue. The government argues that the measures address the difficulty small shops face in accessing supplies, a problem highlighted in a Menon analysis of the market. Previous attempts to regulate supplier-retailer negotiations were abandoned after strong lobbying.
Why it matters
The rules could level the playing field for small grocery stores and affect prices for Norwegian consumers.
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