France’s competition authority is conducting a review of two retailer purchasing alliances—Aura and Concordis—established in the last two years. The aim is to determine whether these alliances negatively affect competition, both upstream and downstream, from a consumer perspective.
L’Autorité de la Concurrence intends to assess potential competitive harms associated with these groups and is inviting third-party comments on competition concerns. The deadline for feedback is set for March 6 for Aura and July 31 for Concordis.
Aura, launched first in 2024, involves major French grocers Intermarché, Auchan, and Casino, who formed the alliance to consolidate purchasing for both branded and private-label consumer goods. Last year, Aura expanded by joining European groups Everest and Epic Partners, which include various notable retailers like Edeka, Picnic, Esselunga, and Migros.
Concordis was initiated last year as well, focusing on branded products, and involves Carrefour and Coopérative U. The group welcomed RTG International from Germany in August. RTG represents several German retailers, such as Rossmann and Globus.
According to French regulatory standards, L’Autorité de la Concurrence will “carry out a competitive assessment of each of these alliances and, where applicable, of the international structures in which they participate.”
The growing trend of major retailers forming purchasing alliances aims to enhance their bargaining power and secure better terms from suppliers. The watchdog has identified “several competitive risks in upstream and downstream markets,” necessitating the appeal for third-party input.
L’Autorité de la Concurrence elaborated, saying, “The competitive assessment will examine the effects of the agreements under review, firstly, on the upstream market for the supply of consumer goods and, secondly, on the downstream market for the retail distribution of predominantly food products.” The focus will also be on potential impacts on end consumers, particularly regarding any possible price reductions.
The upstream review will scrutinize risks related to supply limitations of consumer goods, quality deterioration, and diminished incentives for suppliers to innovate or invest. Conversely, in downstream retail distribution, attention will be paid to potential coordination among actors and standardization of purchasing conditions.
Aura has made certain concessions to L’Autorité de la Concurrence concerning medium-sized enterprises (ETIs). The alliance occupies a significant market position in the supply of consumer goods, distinguishing itself from similar purchasing groups by also including a notable share of medium-sized companies. Consequently, Aura has agreed to exclude ETIs from its alliance.
