Grocery giants ParknShop, Wellcome accused of pressuring suppliers
Council says behaviour of Wellcome, ParknShop should be investigated as being anti-competitive
Supermarket giants ParknShop and Wellcome are keeping prices artificially high by pressuring suppliers not to sell to rivals who undercut them, the Consumer Council says.
The watchdog yesterday released its latest study of the grocery market. It claimed the two chains had reached exclusive agreements with suppliers and facilitated a "recommended retail price" system for products.
Both activities can be illegal in the European Union, the jurisdiction Hong Kong used as a point of reference for the competition law passed last year which is yet to be put in operation.
ParknShop has 28.6 per cent of the grocery market while Wellcome takes 33.9 per cent.
"If supermarkets secure exclusive deals with a majority of suppliers for a vital product such as rice, consumers must go to the chains to shop," council member Thomas Cheng Kin-hon said.
Meanwhile, suppliers could find themselves under pressure if supermarkets found that smaller stores were selling their goods cheaper, the watchdog said.
