France fines organic food wholesalers €12.76M for cartel price-fixing scheme

France’s Competition Authority has fined four organic food wholesalers €12.76 million for running a cartel. The scheme lasted over seven years and aimed to block price comparisons between retailers. Synadis Bio, the ringleader, received the heaviest penalty at €10 million. The cartel involved Synadis Bio, Les Comptoirs de la Bio (LCB), ITM Enterprises, and Greenweez. Investigators found evidence in Synadis Bio’s internal documents and meeting records. These proved the companies had agreed to restrict brand sales across different store types.

In 2016, Synadis Bio hosted talks to separate brands between specialist organic shops (GSS) and conventional supermarkets (GSA). The goal was to stop customers from comparing prices and pushing them down. Regulators confirmed that LCB, ITM Enterprises, and Greenweez all took part in the scheme. The cartel operated as France’s organic food market boomed. Sales grew from €3.7 billion in 2010 to €13.2 billion in 2020. Yet while supermarkets grabbed over 56% of the market by 2020, specialist stores saw their share shrink below 30%.

The fines follow a lengthy investigation into anti-competitive practices. Synadis Bio faces the largest penalty as the cartel’s organiser. The other firms received smaller sanctions for their roles in the price-fixing arrangement.