Answer:

By: trademagazin Date: 2007. 02. 28. 08:00

According the Law about Commerce in effect since 1. June 2006, complaints about the abuse of market power by major market players are investigated by the Fair Trade Office (GVH). Only one investigation has been initiated by the GVH since the law came into effect, and the number of reported complaints has also remained very low. GVH ordered a survey to be prepared to help identify the reasons why the number of complaints remains so low. The only investigation initiated by GVH so far concerned Tesco-Global Áruházak ZRt., when it was detected that its system of merchandising had been altered significantly. The 40-50 merchandising businesses used previously had been replaced by only 6, which brought about a number of unfavourable changes for suppliers. GVH suspected that a breach of the Law about Commerce has occurred where Tesco abused its excessive power by forcing its suppliers to accept merchandisers of its own choice. According the Law about Commerce, business enterprises with significant market influence are obliged use fair trade practices in connection with their suppliers and to work out a relevant Code of Conduct. The National Retail Association submitted its Code of Conduct for approval on 9. November 2006. The Code was signed by Auchan Magyarország Kft., Cora Magyar Hipermarket Kft, Csemege-Match Kereskedelmi Zrt., Metro Holding Hungary Kereskedelmi Kft., Plus Élelmiszer Diszkont Kft., Penny Market Kft., Profi Magyarország Kereskedelmi Zrt., Reál Hungária Élelmiszer Zrt., SPAR Magyarország Kereskedelmi Kft., and Tesco Global Magyarország Rt. among others. GVH has granted approval for the Code till 31. December 2007, but it reserved the right for intervention in the future, since experience will be needed to determine how well the Code is applied in practice. GVH has also requested suppliers and their organisations to report their comments regarding the application of the provisions of the Code.

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