A new French Senate inquiry into commercial practices in the grocery supply chain has raised serious concerns about the growing concentration of retailer buying power and the impact of cross-border retail alliances on suppliers and consumers across Europe.
In a joint statement, AIM, AISE, Cosmetics Europe and FoodDrinkEurope welcomed the report and called for stronger EU action to address unfair trading practices and gaps in the current regulatory framework.
The 402-page inquiry — described as one of the most extensive investigations into retailer buying power in Europe in recent years — found that increasingly concentrated retail alliances are intensifying pressure on suppliers through opaque structures, coercive practices and significant international service fees.
Importantly, the report also challenges the narrative around Territorial Supply Constraints (TSCs). While supplier prices increased by 6–7% due to higher input costs, the Senate found that consumer prices rose by as much as 19% after 2021, raising questions about claims that suppliers and TSCs are the primary drivers of food inflation.
The inquiry further highlights important limitations in the current EU Unfair Trading Practices Directive, notably the exclusion of major international buying alliances from its scope.
In response, the associations are calling for an ambitious revision of the Directive to ensure stronger protections, address regulatory gaps surrounding cross-border retail alliances, and deliver fairer commercial relationships across the Single Market.
“This report sends a strong signal to European policymakers that the current regulatory framework is no longer fit for purpose,” said Michelle Gibbons, Director-General of AIM.
