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Supply Chain

Ice Cream Maker Frikom Under Investigation By Competition Authorities

By Branislav Pekic
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Ice Cream Maker Frikom Under Investigation By Competition Authorities

Serbia’s Commission for the Protection of Competition has launched an investigation into the alleged 'abuse of a dominant position' by ice cream manufacturer Frikom.

In a statement, the Commission said it has initiated a procedure to establish whether Frikom sought to instigate a dominant position in the distribution or sale of ice cream.

At the same time, officials of the Commission carried out an unannounced inspection of the premises, data and documents of the frozen food company.

Alleged Influence

Based on the data seized, the Commission has so far alleged that Frikom took actions that influenced individual customers, mainly local retail chains, shops and kiosks, to exclusively buy its own ice cream.

The Commission also alleges that Frikom has offered the aforementioned customers cash benefits in the form of additional discounts and/or cash payments, in order to prevent or end cooperation with competing ice cream manufacturers.  According to the Commission, the proposed amount could be considered a form of compensation with which customers would be able to make up losses incurred due to the withdrawal from sale of competing products.

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The Commission has also invited all interested parties to submit data, documents or other relevant information that may be of relevance to these proceedings.

Frikom is owned by Croatian food producer and retailer Agrokor, which also operates the Idea and Mercator supermarkets in Serbia.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine

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