Italy Launches Investigation into Major Retailers' Food Pricing Practices

Investigation into Retailers' Impact on Food Prices

ROME, Jan 14 (Reuters) - Italy's antitrust regulator said on Wednesday it had opened an investigation into big retail groups operating in the country and their role in the price dynamics of the food sector. 

Focus on Purchasing Power and Supplier Relations

The regulator said it would specifically look into the retailers' purchasing power and policies adopted when dealing with suppliers, who are often smaller and lament poor profit margins on their products. 

The probe comes as food prices are rising, the statement said, adding that these were up 24.9% between October 2021 and October 2025, well above the 17.3% increase in the cost of general consumer goods. 

"In the face of these rises in consumer prices, agricultural producers often complain of a squeeze on their margins...which could be partly attributable to the significant imbalance in bargaining power between farmers and large retail chains," it added. 

Market Dynamics and Retailer Practices

The watchdog will also analyse whether retailers charge suppliers for services such as special sales and positioning of their products and the effect on the market of the rise of products with retailers' brands, known as private labels. 

The regulator did not mention specific large-scale retail groups. 

The Italian food retail market is large and growing but very fragmented, with supermarkets still co-existing alongside traditional grocery stores and open-air markets. Although foreign brands have a substantial presence in the country, domestic players still have the larger share of the market.      

(Reporting by Giulia SegretiEditing by Keith Weir)