Tesco facing competition probe over its tie-up with French supermarket chain Carrefour
Tesco is facing an investigation into the impact its tie-up with Carrefour, one of France’s biggest supermarket groups, has had on competition.
France’s anti-trust authority said it will probe the British chain as part of a review into a number of deals struck between French and European firms.
The two grocers agreed to join forces earlier this month in a bid to eke out lower prices from suppliers.
Competition concerns: France’s anti-trust authority said it will probe Tesco as part of a review into a number of deals struck between French and European firms
Yesterday the watchdog said it will look at whether the agreement between Tesco and Carrefour threatens competition rules.
The concern is that the partnership could put pressure on suppliers who are already under huge demands to lower costs.
Depending on the outcome, the French authority could ask Tesco and Carrefour to change the terms of the agreement.
Sainsbury’s £14billion takeover of Asda is also being investigated in the UK by the Competition and Markets Authority.
The pair also plan to cut prices for customers by putting the squeeze on big suppliers.
Increased competition in the grocery market in both the UK and France is prompting more grocers to join forces in an attempt to lower prices.
A Tesco spokesman said: ‘We will co-operate fully with the French competition authority investigation.’