German competition authorities demand price increases
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- 1 min
- Published:
- 15 September 2000
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Somewhat contrary to normal practice, the German competition authorities have demanded that some of the large multiples, Aldi, Lidl and Wal-Mart, increase prices on a range of products.
According to Wall Street Journal Europe, the authorities accuse the American Wal-Mart and the German Aldi and Lidl of exploiting their financial muscle to sell basic products such as milk, sugar and flour at below cost price – a practice which is illegal in Germany.
The competition authorities argue that the low prices hurt the small and medium-sized shops, which are unable to compete on price. In the longer term, the authorities claim that this will weaken competition in the market and lead to higher prices.
Arla Foods is an international dairy company owned by more than 8,400 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.
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