The Authority will examine the role of large-scale retail chains in the allocation of value added along the agri-food supply chain and in final price formation. Stakeholders are invited to submit feedback or observations by 31 January 2026.
The Italian Competition Authority has launched a market investigation into the role of large-scale retail distribution within the agri-food supply chain, against the background of a widening gap between overall inflation and food price inflation in recent years. According to ISTAT data, between October 2021 and October 2025, food prices increased by 24.9%, almost eight percentage points more than the rise in the general consumer price index over the same period, which stood at 17.3%.
Despite rising consumer prices, agricultural producers have frequently reported squeezed margins or margin growth that does not keep pace with cost increases. This situation may in part be linked to an imbalance in bargaining power between farmers and major large-scale retail chains.
Within the agri-food supply chain, the trading stage between final distributors and suppliers is particularly relevant, as it influences both supplier remuneration and, consequently, the profitability of upstream production activities, as well as consumer price trends. The investigation will therefore assess how large-scale retail chains exercise their purchasing power. This includes the use of non-corporate aggregation arrangements such as cooperatives, buying groups, and super-buying groups, as well as the fees charged to suppliers for sales-related services, including product listing, shelf placement, promotions, new product launches, and trade spending. The growing role of distributor-branded products, or private labels, will also be examined.
From a competition perspective, the exercise of purchasing power by distribution chains is considered significant. The organisation of purchasing activities, the provision of services to suppliers, and the sourcing and positioning of private label products are key competitive factors among large-scale retailers and can have a direct impact on final consumer prices.
The Authority has therefore opened a public consultation on the issues set out in the decision launching the market investigation. Stakeholders may submit their observations by no later than 31 January 2026 via email to [email protected]
To view the full report, click here. (Italian)
For more information:
Autorità Garante della Concorrenza e del Mercato
Tel: +39 (0) 6 858 211
Email: [email protected]
www.en.agcm.it
