The competition authority in Switzerland estimated this Thursday that the French group Madrigall is abusing its market power against the Swiss bookstore chain Payot.
The Competition Commission (Comco) judges the purchase prices offered by Madrigall to Payot as abusive”she indicated in a press release, and requires that Payot can “ obtain supplies 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.
Over-marking of book prices
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. “ Payot, one of the main bookstores in Romandie, wanted to source its 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 its press release. However, its decision can be contested before the Federal Administrative Court.
The four major French distributors targeted
When the investigation was opened, the general director of Payot, Pascal Vanderberghehad explained to Weekly Books that his complaint to Comco had been filed against Madrigall “ but also Interforum, Hachette Distribution and MDS “, nevertheless still hoping at the time ” an amicable agreement ».
After years of negotiations with French publishing houses, he relied to file his complaint on new rules in competition law in Switzerland, concerning so-called “relative” market power, which had come into force. early 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 border to buy their books cheaper.
Around 80% of books sold in French-speaking Switzerland come from France, according to the Swiss newspaper Time. They are sold 60 to 80% more expensive than their French price. In 2012, Payot’s boss, Pascal Vandenberghe, reached an arrangement with Gallimard and Flammarion before they reversed course. In 2013, Comco had already imposed a fine of 16.5 million francs (20.6 million euros at the time) on French broadcasters.
