Russian competition authorities have launched an investigation into the country’s largest supermarket chains on suspicion of colluding to raise food prices, reported The Moscow Times.
Russia’s anti-monopoly service said Friday it had opened a probe into X5 Group — which controls the Pyaterochka and Perekrestok brands — and Magnit, Russia’s two largest food retail chains, as well as the Letna hypermarket chain.
The investigation is being launched “in order to prevent an unreasonable increase in the costs of socially significant food products,” the agency said in a statement. It conducted “unscheduled inspections” Friday in order to look for “anti-competitive collusion which could have led to the maintenance or increase of prices.”
The controversial inquiry comes as surging inflation threatens to derail Russia’s otherwise strong economic recovery. Inflation is currently running at 6.5% on annualized terms — the highest level for five years — and is a highly sensitive topic ahead of parliamentary elections next month.
The Russian government has already rolled out a number of measures including price caps and export quotas in an attempt to keep inflation in check. Prime Minister Mikhail Mishustin previously attacked “corporate greed” as being behind the rise in food prices. The Central Bank, meanwhile, which is tasked with keeping inflation at around 4%, said global factors and supply chain disruptions as a result of the pandemic were the cause of rising food prices at home.
The competition watchdog said it has the power to find companies up to 15% of their annual turnover — a combined four trillion rubles ($54 billion) at the outlets under investigation — should it find evidence they had skirted Russia’s competition laws.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI