Norway’s top three supermarket chains have been fined a total of NOK 4.9 billion for price collusion, following a six-year investigation into illegal practices that kept grocery prices high for consumers.
In a significant move to address concerns over high grocery prices in Norway, the Norwegian Competition Authority has imposed hefty fines on the country’s three largest supermarket chains—NorgesGruppen, Coop, and REMA.
The fines come after a lengthy investigation into illegal price collusion practices that have reportedly stifled competition and kept food prices high for years.
NorgesGruppen, which operates popular Norwegian supermarket brands such as KIWI, Meny, and Spar, has been fined NOK 2.3 billion, while Coop and REMA each face fines of NOK 1.3 billion.
Price Hunters
The penalties mark the culmination of a six-year probe into the industry’s use of “prisjegere” or “price hunters”—individuals hired to scan competitors’ prices, allowing supermarkets to adjust their pricing in near real-time.
According to the competition authority, this practice led to a coordinated effort among the grocery giants to keep prices high, affecting millions of Norwegian consumers.
The price-sharing allegedly took place from January 2011 until at least April 2018, during which time the use of price hunters intensified.
Regulators claim this not only discouraged price reductions but also made price increases more likely, harming consumers across the country.
“Serious Violation of Law”
Competition Authority Director Tina Søreide condemned the practice as a “serious violation of law,” noting that it had undermined healthy competition in the market.
She emphasised that the size of the fines reflects the gravity of the offences: “Poor competition typically results in higher prices for consumers. When it concerns grocery store items, it affects us all.”
Supermarket Chain Bosses Hit Back
Despite the severity of the fines, all three supermarket chains have denied any wrongdoing and are planning to appeal the decision.
NorgesGruppen’s CEO, Runar Hollevik, argued that the price-hunting practice has always been transparent and that it has actually strengthened, rather than weakened, competition.
“We simply can’t understand the competition authority’s conclusion,” Hollevik said, adding that NorgesGruppen has no plans to cease using price hunters.
Coop and REMA echoed similar sentiments, insisting that the practice is a normal part of business and contributes to a competitive market. Philipp Engedal, Managing Director of Coop Norge, flatly denied that Coop had engaged in illegal cooperation.
The supermarket groups have six months to file an appeal, with a lengthy legal battle expected to follow.
Sky-High Grocery Prices
The fines and the ongoing legal wrangling come at a time when Norwegian consumers are already grappling with some of the highest grocery prices in Europe.
Many Norwegians frequently cross the border to shop in neighbouring Sweden, where prices can be significantly lower.
While the competition authority hopes that its actions will lead to lower prices in the long term, scepticism remains.
“We have paid too much for food items for years,” remarked NRK commentator Cecilie Langum Becker. However, she noted that it is still unclear exactly how much consumers have overpaid due to the alleged collusion.
As the supermarket chains prepare to contest the fines, the Norwegian grocery market is set to remain under intense scrutiny, with consumers anxiously awaiting potential changes that could affect their wallets.
