The publication of the Interim Report of the sector inquiry into production, distribution and marketing of basic consumer goods is a very important development and reference point in an attempt to map the market, which started by the HCC in 2011, following relevant press coverage about rising and varying prices of basic consumer goods prices at all levels of the market.

The HCC, according to article 40 of Law 3959/2011, in 2012 decided to launch a sector inquiry into production, distribution and marketing of basic consumer goods and in particular food items (dairy, butter, pasta, cereals and coffee), as well as cleaning and personal hygiene items (personal and oral hygiene items, home cleaning products). As part of the sector inquiry, the HCC sent a series of questionnaires to supermarket chains and suppliers.

In September 2019, the present market study was prioritized. The Interim Report is based on the data collected in 2014 - 2015, and supplemented with data from recent studies and selective data from questionnaires in the late months of 2019 and early months of 2020. The Interim Report presents useful conclusions and proposes solutions, which are the subject of this public consultation and a useful starting point for the Final Report in the next 4 months.

In addition, the publication of the Interim Report for consultation with market participants is most necessary, at a time when the supermarket industry is undergoing significant changes due to e-commerce and new technologies and the seismic changes brought by COVID-19.

More about the HCC initiatives and the launch of other sector inquiries at a time when the COVID-19 pandemic has brought about significant changes in the habits of consumers, read more here..

Following the publication of the Interim Report and after the completion and processing of the data from the public consultation, the Final Report will be published in 4 months.

More about the timeframe and future actions here.

The aim of this sector inquiry is to examine potential competition problems in the production, distribution and marketing of basic consumer goods:

In particular, the following were examined:

• the structure of the supermarket supply chain for specific product categories and the regulatory framework governing its operation;

• the emerging changes with the development of e-commerce and the advent of new technologies;

• specific discount practices;

• category management;

• private labels;

• buying alliances for specific basic consumer products and in particular food products;

• as well as the (superior) bargaining power of suppliers and supermarkets.

The sector inquiry focused on eleven (11) product categories, namely: (1) cured meat products, (2) soft drinks - ready-made tea - energy drinks - sodas, (3) powdered laundry detergents, (4) yogurt and yogurt desserts, (5) cereals for breakfast, (6) pasta, (7) coffee, (8) legumes, (9) feta cheese, (10) toilet paper and (11) sliced bread.

It examined problems identified in the various stages of the supply chain in a bid to propose actions that will improve its effectiveness for the benefit of the final consumer.

This sector inquiry examines the entire supply chain of consumer goods. In order to assess the overall economic impact of the retail sector, it takes into account the value chain and its links to other sectors of economic activity. The retail sector value chain includes sectors that supply products and services, as well as distribution sectors of products for final consumption.

These categories comprise products characterized by relative homogeneity, may present certain structural characteristics in the relevant supply market (possible dominant position or oligopoly or competition), impact the Consumer Price Index and differ in terms of penetration of private label products.

The following table provides a summary of the possible problems and the possible solutions/ reaction by the HCC and market players.

 

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Following the key findings and considerations regarding competition at various levels of the value chain, solutions are proposed. These solutions aim not only to protect consumer surplus in the short term by boosting horizontal competition, but also indirectly increase consumer surplus and economic efficiency in the medium term through the development of innovation, competitiveness and resilience of the supply chain. In the long run, the suggested solutions also aim at strengthening vertical competition in the affected value chains. The suggested solutions are:

1. Adoption of soft law instruments through a hybrid approach to cases of significant bargaining power. Such non-binding legislation can be enacted, for example, through a Code of Conduct or a Good Practice Guide between the parties involved, with respect to the identified problematic practices, which may affect end consumers and/or suppliers. The development and adoption of such best practices can address more effectively and in accordance with the rules of fair competition external costs and supply side problems, especially under the current market conditions created by COVID-19;

2. Possible legislative changes, e.g. amendment to the Rules for the Distribution of Products and the Provision of Services and;

3. Possible introduction of new institutions, such as that of an Ombudsman, appointed by the HCC, which will systematically monitor those markets where significant power of suppliers or buyers is observed. Such new institutions can act as a hub for communication and information on relevant issues affecting the industry and will contribute in general to the audit work of the HCC. With respect to the latter proposal, in the current difficult and extraordinary conditions facing the country due to the COVID -19 pandemic, appointing an Ombudsman, with such competences will aid the HCC with the provision of information about the changing market situation and the needs of companies in these special economic and social conditions. Such information will allow the HCC to provide guidelines for practices that, despite the possibility of reducing competition, may be necessary to organise the security of procurement and distribution networks, have a positive effect on economic efficiency and resilience of the supply and as such possibly counterweight any anti-competitive effects.

• Participation in the teleconference

If you would like to participate in the teleconference please email to This email address is being protected from spambots. You need JavaScript enabled to view it. until June 1, 2020. Please indicate the name of the institution or company you are representing. The teleconference will take place on 3 July 2020. An invitation with details for the exact date and time of the teleconference, as well as for the way of communication, will be sent to the participants in due course.

• Written Submissions

You are also invited to submit written comments until June 1, 2020. The written submissions will be published on the market study’s dedicated website with reference to the name of the institution or company submitting them. Submissions on a personal capacity not representing a specific institution or company will be published anonymously, unless the author otherwise specifies.

If you wish your submission or any part of it to be treated as confidential, please make a relevant statement when submitting it.

Participation in the consultation is open to anyone who can provide useful information and comments on any or all of the issues that are the subject of this market study. We will greatly appreciate the participation of (amongst others):

• retailers (brick and mortar and e-commerce)
• companies active at previous stages of the supply chain (producers, importers, wholesalers)
• associations and unions
• business consultants, law firms, economists
• academics and researchers
• consumer associations or individual consumers

HCC offices will be staffed with security personnel, while most of the staff will work remotely.

Submission of documents in person or by mail will no longer be possible. Citizens & Businesses are required to use only the following e-mail addresses:

This email address is being protected from spambots. You need JavaScript enabled to view it. for submitting documents to the HCC,

This email address is being protected from spambots. You need JavaScript enabled to view it. for submitting notices of concentrations,

This email address is being protected from spambots. You need JavaScript enabled to view it. for filing complaints,

or through the Hellenic Competition Commission's website form for submitting general questions or information requests.

The HCC Plenary Session will hold scheduled meetings and conferences via a teleconference platform after user authentication.

The legally binding deadlines still apply to the work of the HCC and HCC will continue to carry out its work, review its cases (including concentrations) and make decisions - through the immediate adjustment of its staff to teleworking. At the same time, it will continue to monitor the schedules, providing extentions where permitted. Any amendment shall be notified to the parties concerned and posted publicly on the HCC website.