The Madrigall publishing group abused its relative market power by refusing to supply Payot with its books under the usual conditions valid in France. The Competition Commission requires it to allow direct supply under French conditions to Payot.
The Payot group is dependent on Madrigall (see box), underlines Comco in a press release on Thursday. It does not have “sufficient and reasonable” alternative sources of supply. Giving up on Madrigall book sales is also not a realistic option.
In this context, Comco considers the purchase prices offered by Madrigall to Payot “abusive”. The French group is now required to allow the French-speaking bookseller to obtain supplies directly from France.
Comco based its decision on the new provisions concerning relative market power, following the fair prices initiative aimed at combating the “Swiss island of high prices”.
“The right price”
“We welcome Comco’s decision with satisfaction,” the bookseller’s management responded in a press release. This verdict “recognizes Payot’s right to obtain supplies (…) at the market price and under the usual conditions of the sector (in France).”
We must now move on to the application phase, which should make it possible “to offer a fair price to our customers while maintaining quality bookstores in French-speaking Switzerland,” adds Payot.
The French-speaking company filed a complaint in autumn 2022 against the French group, denouncing an increase in the price of books and a distortion of competition. Its general director at the time Pascal Vandenberghe then spoke of “racketeering”, causing in-store price differences of 35% to 50% compared to the possible price if Payot could buy in France.
The favorable impact that Payot customers can now expect is not yet quantifiable. “Defining a precise percentage for the price reduction is premature. We particularly need to know what our final purchasing conditions will be with Madrigall. We want the price differential to be as low as possible for consumers,” indicated Deputy Managing Director Bénédicte Kuchcinski. She expects that the implementation of Comco’s decision will take “a few months”.
The Comco verdict can also be appealed before the Federal Administrative Court.
ats/ther
Business
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