COMCO agrees with Payot, victim of an “abuse of power”

It’s a decision that will make French-speaking bookstores jump for joy. The Competition Commission agrees with Payot in its fight to lower book prices in Switzerland. She in fact proves wrong the large French publishing group Madrigall which refused to the French-speaking bookseller to supply its books at French prices.

COMCO considers “that Madrigall abuses its relative market power towards Payot”. It therefore requires the French group to “allow direct supply under French conditions to Payot”, she said on Thursday.

Madrigall is one of the most important French publishing groups. It includes around fifteen publishing houses including Gallimard and Flammarion and recognized editorial brands. Until now, Swiss booksellers buy his books via official channels. But Payot wanted to get supplies directly from France. Problem: Madrigall demanded much higher prices than in France.

The French-speaking bookseller therefore denounced the group to COMCO in autumn 2022. This for a possible violation of the rules introduced as part of the counter-project to the initiative for fair prices. A text whose objective was to combat the island of Swiss high prices by guaranteeing in particular the non-discriminatory purchase of goods and services abroad.

In its judgment, COMCO explains that “Payot does not have sufficient and reasonable alternative sources of supply. Giving up on Madrigall book sales is also not a realistic option. Payot is thus dependent on Madrigall. As a result, in this context, the prices imposed by the French group are considered abusive.

The decision of the COMCO can be appealed to the Federal Administrative Court.