The 16 applications related to unfair trading practices in connection with the sale of agricultural and food products.
The AFCA had received information according to which MPREIS had submitted pro forma invoices to suppliers of agricultural and food products showing varying flat rate amounts and with no correlation to the products actually purchased. MPREIS had demanded these payments to support a transformation project. The AFCA has now filed applications with the Cartel Court against MPREIS due to the latter having breached the FWBG in relation to 16 suppliers.
In accordance with the FWBG, if there is an economic imbalance between the two companies, a buyer may not demand payments from a supplier that are unrelated to the sale of that supplier’s agricultural and food products.
The AFCA applied to the Court to have appropriate fines imposed.
Affected business
MPREIS is a food retailer headquartered in Tyrol with 279 stores in western Austria and in South Tyrol. It has a strong market position in Tyrol in particular.
Fair Competitive Conditions Act (FWBG)
The FWBG aims to protect suppliers of agricultural, food and grocery products from economically stronger buyers.
Unfair trading practices are prohibited, which includes unilateral changes to supply agreements, demanding payments that are not related to the sale of agricultural and food products of the supplier, the unlawful use of trade secrets, threatening commercial retaliation if the supplier files a complaint with enforcement authorities, discrimination etc.
According to the FWBG, the Cartel Court may impose fines of up to EUR 500,000 for breaches of the ban on unfair trading practices.
The AFCA published its revised Fairness in business paper, which provides an overview of the FWBG as well as permitted and prohibited trading practices, in October 2022 (currently only available in German).
The FWBG entered into force on 1 January 2022, with the AFCA being the authority in charge of enforcing the Act. Suppliers affected by unfair trading practices may also lodge complaints with the Fairness Office.