Economic Competition Authority enters 'VAT-war'

Economic Competition Authority was informed that the from 1 July some retail businesses turned to its suppliers with a call for price reduction. Economic Competition Authority seeks to clarify the case.

Some of the chains threatens their suppliers with "outlisting"of certain products which are expected to fail in reducing prices. In view of the fact that the Trade Act, prohibits certain forms of pressure in cases of the traders having significant market power so it cannot be ruled out that some traders were unlawful. The Economic Competition Authority would like to know what kind of preparations have been made to prevent or reduce traffic increase after the 1st  of July 2009. The Economic Competition Authority also does not rule out a possible initiation of an investigation, but needs to clarify the precise facts, and therefore contactthe suppliers and traders' associations, but welcomes any additional information from the suppliers, or other interested parties – reports Világgazdaság Online