Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » High time for Europe’s consumers to benefit from the single market

    High time for Europe’s consumers to benefit from the single market

    npsBy nps19 November 2020Updated:2 July 2024 No Comments3 Mins Read
    — Filed under: Focus
    Share
    Facebook Twitter LinkedIn Pinterest Email
    — last modified 19 November 2020

    Speaking today on the publication of a study by the European Commission on supply restrictions imposed by manufacturers which prevent retailers buying products in one country and selling them in another, EuroCommerce Director-General Christian Verschueren said:


    Advertisement


    “The study shows that consumers could save some ? 14bn on their food bills if retailers were not constrained by these restrictions, known as Territorial Supply Constraints (TSCs). We are grateful to the Commission for having carried out this independent investigation. It sets out the facts and provides empirical evidence that TSCs are a widespread practice. It is now time for the Single Market to work for consumers in this area, and to put a hard stop to these restrictions which prevent retailers providing their customers with the full range of branded goods at the best price.”

    TSCs are restrictions imposed by manufacturers that make it impossible for retailers to choose where to source products. While manufacturers can source inputs globally and focus production on a limited number of sites, retailers have no choice but to accept the manufacturer’s conditions preventing them from sourcing in one country and selling in another, forcing them to use only the manufacturers’ designated national distributor. These large manufacturers supply essential must-have products which consumers expect to find in a shop, and which retailers therefore have to stock. These are one of the main reasons why consumers pay significantly different prices across Europe for the same branded goods, with no other justification.

    The study finds TSCs most prevalent where suppliers have stronger bargaining power and where brand loyalty is higher. Practices fragmenting the single market can take many forms, such as refusal to supply certain products (this was highlighted by 46% of responses), different packaging and language labels (30%), limiting supply to a market chosen by the manufacturer (29%), different recipes (27%) and limiting quantities supplied (24%). As a result, manufacturers can charge significantly different prices across Europe, with little relation to costs of production or distribution. The Commission has recognised the practice. It imposed a fine last year of ?200 million on AB InBev for preventing the free circulation of beer from the Netherlands to Belgium. It also mentioned TSCs in their reports on retail and on the single market. Since, typically, 80% of the final retail price of a product is made up of the wholesale cost, and retailers’ net margins are no more than 1-3%, the widely varying wholesale prices resulting from these practices across Europe feed directly into the price to the consumer.

    Verschueren added:

    “Removing TSCs would enable retailers to choose freely where they source in the Single Market, arrange their own, more efficient, logistics, negotiate better supply conditions, transfer products to their shops in other countries, and access the range their customers want. Consumers, in particular in smaller countries, but also in larger ones, could benefit significantly from the resulting competition, with wider choice and lower prices.”

    EuroCommerce

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    Euro - ECB-Photo by Mika Baumeister on Unsplash

    US Fed leaves interest rates unchanged citing resilient economy – Euro currency news daily

    Investment - Photo by Anna Tarazevich on Pexels

    EU agrees on shorter settlement cycle for securities trading

    Trade front loader beside intermodal containers - Photo by Chanaka on Pexels

    MEPs seal deal with Council to simplify EU carbon leakage instrument

    Job interview recruitment - Photo by Edmond Dantès on Pexels

    How to Improve Your Search for Better Marketing Talent

    Credit card terminal - Photo by Yan Krukau on Pexels

    How to Reduce Payment Processing Fees in Your Business

    Health research - Photo by National Cancer Institute on Unsplash

    EU awards EUR 721m funding for cutting-edge research

    LATEST EU NEWS
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    US Fed leaves interest rates unchanged citing resilient economy – Euro currency news daily

    19 June 2025
    Investment - Photo by Anna Tarazevich on Pexels

    EU agrees on shorter settlement cycle for securities trading

    18 June 2025
    Trade front loader beside intermodal containers - Photo by Chanaka on Pexels

    MEPs seal deal with Council to simplify EU carbon leakage instrument

    18 June 2025
    Health research - Photo by National Cancer Institute on Unsplash

    EU awards EUR 721m funding for cutting-edge research

    17 June 2025
    mobile-phone-Smartphone - Image by Dariusz Sankowski from Pixabay

    Brussels proposes cheap calls for Ukrainians in EU from 2026

    17 June 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?