The competition authority in Switzerland estimated Thursday that the French group Madrigall, owner in particular of the publishing houses Gallimard and Flammarion, is abusing its market power against the Swiss bookstore chain Payot. The Competition Commission (Comco) “judges the purchase prices proposed by Madrigall to Payot as abusive”she indicated in a press release, and requires that Payot can “purchase directly under the usual conditions in France”.
Active in French-speaking Switzerland, the French-speaking part of the country, this chain of bookstores contacted Comco in 2022 to challenge the supply conditions imposed on Swiss booksellers. This chain, which has 13 points of sale in Switzerland, questioned the excessive increase in book prices imposed on Swiss booksellers who are linked for their orders to a complex distribution system which prevents them from obtaining supplies directly from France. “Swiss booksellers have so far purchased Madrigall’s books through official channels”explains the Competition Commission in the press release.
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“I needed a front door”
“Payot, one of the main bookstores in Romandie, wanted to obtain supplies directly from France” more “to do this, Madrigall demands much higher prices from Payot than those usual in France”note la Comco. Or Payot “does not have sufficient and reasonable alternative sources of supply” and is “dependent on Madrigall”continues Comco. “Comco requires Madrigall to allow Payot to obtain supplies directly under the usual conditions in France”adds his press release. However, its decision can be contested before the Federal Administrative Court.
At the opening of the investigation, Payot’s general manager, Pascal Vanderberghe, explained to AFP that his complaint to Comco had been filed against Madrigall but could also have been directed against another group of companies. edition. “It is the system that I denounce, and not Madrigall as such. I needed a front door”he then explained to AFP. After years of negotiations with French publishing houses, he based his complaint on new rules in competition law in Switzerland, concerning so-called market power. “relatively”which came into force at the beginning of 2022.
Its objective was to obtain better pricing conditions to ensure the profitability of bookstores in Switzerland, faced with tough competition between online sales and shopping tourism, consumers being tempted to go to the other side of the the border to buy their books cheaper.
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