A recent investigation conducted by Greek news outlet TA NEA has revealed significant disparities in pricing among leading supermarket chains in Greece and six other countries, based on market shares in each respective country. These findings highlight the necessity for coordinated actions at the European level to address these discrepancies.
For instance, household staples like snacks, particularly potato chips, show a contrast in pricing between Greece and France, with the former nearly doubling the cost per package compared to the latter. Similarly, chocolate-covered candies from a multinational giant exhibit notable price variations across different European markets, with Greece charging 3.68 euros, while Spain offers them at 3.09 euros, per package.
Moreover, disparities extend to cleaning and personal hygiene products, where Greek consumers face higher prices compared to their European counterparts. For example, a well-known laundry detergent powder in Greece is priced at 15.25 euros, significantly higher than in Spain (12.85 euros), Cyprus (11.99 euros), and Malta (14.49 euros). Last December, Greece topped the list with a price of 19.85 euros for the same product.
These discrepancies persist despite the lower purchasing power of Greek consumers relative to those in other eurozone countries. In response, Prime Minister Kyriakos Mitsotakis has proposed legislative measures at the EU level to protect consumers from the disproportionate influence of multinational corporations in setting prices across member states.
This pricing phenomenon, termed territorial supply constraints (TSC), as highlighted by authorities in Athens, reflects a commercial practice where the same multinational company prices its products differently across various markets, exploiting its asymmetrical power over individual member states and merchants.
Since September last year, the Ministry of Development has launched a crackdown on multinational companies violating profit margin regulations, imposing fines totaling millions of euros.
However, these companies, wielding considerable influence with numerous brands on supermarket shelves, have contested the legality of these fines, arguing that the legislation regarding profit margin violations is inherently unfair.
