Norgesgruppen, Rema, and Coop fined billions for illegal price collusion in Norway

Three major players in the grocery sector—Kiwi owner Norgesgruppen, Rema, and Coop—were recently fined billions for engaging in illegal price collusion. The authorities raised concerns about how frequently and quickly these companies coordinated to share their prices through so-called “price hunters,” who use handheld devices to monitor competitors’ pricing on various grocery items.

Despite receiving orders to cease these practices immediately upon notification of the decision, Norgesgruppen was quick to deny the allegations.

According to the Competition Authority’s director, Tina Søreide, “They cannot collaborate in a manner that allows each other’s price hunters as we have outlined in the decision. This is effective from the day the decision is made.” She referenced Section 12 of the competition law, emphasizing their broad authority to define the necessary measures to eliminate competition issues.

Although all three companies have indicated their intention to appeal the decision, Søreide was clear about corporate responsibility, noting that businesses must figure out how to comply with the directive. “Our experience is that businesses listen to us when it comes to cessation orders, and we normally see that it has an effect,” she stated.

If they continue to employ the price hunter practices described in the ruling, they may be violating the law again, which could lead to further penalties. Norgesgruppen has committed to maintaining their use of price hunters, arguing that knowing market prices is essential for competing on costs. They adamantly assert that they have not broken any laws and have filed an appeal against the authority’s decision.