This research paper, commissioned by AIM and conducted by RBB Economics, provides an in-depth analysis of Territorial Supply Constraints (TSCs) within the European Union’s retail sector.
It critically examines the European Commission’s concerns regarding cross-border price differentials and the role of TSCs in influencing consumer prices and product availability. The study highlights that price variations often reflect the efficient functioning of markets, considering factors such as national market characteristics, consumer preferences, and operational costs. The paper underscores the importance of a nuanced understanding of TSCs, cautioning against broad regulatory measures that could inadvertently harm market efficiency and consumer welfare.