EU mulling retail sector probe in inflation fight

(BRUSSELS) - The European Commission is considering launching a probe into the retail sector to check if competition is working properly in the face of record inflation, a top official said Tuesday.

"We are considering (whether) to open an internal market ... inquiry on how the retail sector is functioning," EU Economic and Monetary Affairs Commissioner Joaquin Almunia told journalists.

With inflation running at over 3.0 percent, close to record highs in Europe, Almunia said that such a probe could be one measure authorities could take in the face of surging prices.

"Governments can do a lot of things (to) improve the functioning of the markets to enhance competition and avoid abuses in fixing prices by the retail sector," he said.

The commission, Europe's top antitrust watchdog, can launch sector-wide inquiries when it suspects that competition is failing in an industry and can use its findings to open specific antitrust cases against companies.

In recent years, it has targeted the energy, telecommunications, financial services and telecommunications sectors with such industry-wide probes.

In February, lawmakers at the European Parliament called on the commission to look into the retail sector and in particular the impact of mergers in the industry on competition.