Criticism of the cartel office's decision: power is concentrated in the food trade

dpa | The takeover of 178 Tegut supermarkets by retail giant Edeka is raising concerns among industry experts. “It is painful for competition that another retailer disappears from the market,” said the President of the Monopolies Commission, Tomaso Duso, and warned of market concentration and thus disadvantages for consumers.

"The authorities will now have to pay even more attention to ensuring that the big four do not drive up prices or prevent innovations," said Duso. The "big four" means Edeka, Rewe, Aldi and the Schwarz Group, which includes Lidl and Kaufland.

The Federal Cartel Office recently approved the takeover of numerous Tegut locations by Edeka. However, the retail chain had to scale down its plan somewhat and is initially only allowed to take on 178 Tegut stores, 24 fewer than planned. This is intended to prevent any deterioration for consumers in the affected regions.

However, the Monopolies Commission has doubts about this assessment. The four major retail chains in Germany already account for more than 90 percent of the local food retail sales, according to the independent advisory committee. “A central area of ​​supply in Germany is therefore in the hands of just four companies,” says Duso.

This is primarily a problem for suppliers. The prices for part of the range are largely the same and the companies can adjust to one another quite easily in a very transparent market. The suppliers are then dependent on the big four and there could be “abuse of buyer power”. But because they also shy away from conflict, it is difficult for authorities to put an end to such abuses.

The Swiss cooperative Migros Zurich announced in March that it would sell Tegut. The chain has around 300 locations in this country. Other German retail chains also want to acquire and continue to operate branches. The smart store chain Tante Enso received approval for 36 supermarkets in June. Further decisions are still pending.