92000E0228

WRITTEN QUESTION E-0228/00

by María Sornosa Martínez (PSE) to the Commission

(4 February 2000)

Subject: Breach of the rules of competition in the selling of pet food in Spain

Illegal and unfair competition is currently occurring in Spain in the marketing and sale of pet foods, with the rights of consumers being infringed. Pet food manufacturers

are operating separate distribution channels for supermarkets on the one hand and small retailers on the other. As a result, small businesses in the sector have been severely affected, since advertising and special offers for pet foods are being provided only to supermarkets, so that small retailers are unable to pass on these benefits to their customers.

This discrimination is exacerbated by the fact that manufacturers are offering supermarkets generally lower purchase prices for pet foods than small shops. This can be seen from the fact that small retailers are not properly informed of special offers, which means that the prices they charge are higher than those charged by supermarkets. As a result, consumers are choosing to shop at supermarkets and neglecting the small shops in their neighbourhood, causing many of them to close down.

Complaints have been made to the Spanish authorities about this unfair competition, since Spanish law does not allow goods to be sold at below cost price in the way that is occurring in the pet food sector.

Will the Commission examine, within the sphere of its responsibilities, whether the case in question also involves breaches of Community legislation on trade and competition?

Does it not consider that this situation in Spain undermines consumer rights, since it encourages people to shop for these products at supermarkets?

Answer given by Mr Monti on behalf of the Commission

(15 March 2000)

At the present time, the Commission does not have any information which would justify the initiation of proceedings against petfood manufacturers in Spain, nor has it received any complaint regarding the practices objected to by the Honourable Member.

It should be pointed out that the differences in petfood prices between supermarkets and small retailers are not in themselves proof that there has been a breach of the Community rules on competition. In a market economy the prices in question may simply reflect differences in the negotiating power of the parties concerned.

In any case, the Spanish competition authorities, and in particular the Servicio de Defensa de la Competencia, would seem better placed to look into this matter, given that any distortions of competition are essentially occurring in Spain.