Competition tribunal has directed that Majid Al Futtaim Hypermarkets amends all supply agreements relating to Carrefour Kenya within 30 days expunging all clauses which result in abuse of buyer power including application of listing fees,application of rebates,transfer of commercial risk to the supplier and unilateral de-listing of suppliers.
Majid Al Futtaim hypermarkets ltd has also been directed to pay Orchards like Ksh. 289,482 as refund for rebates deducted from invoices for 2017, 2018 and 2019 regarding the supply of probiotic yoghurt.
Majid Al Futtaim hypermarkets ltd has also been penalised Ksh 124,768 being 10.0% of its annual turnover in 2018 from its Carrefour franchise from sale of cool fresh yoghurt.
Competition authority has ordered Carrefour to refund local supplier discounts forced on its products in an 'abuse of buyer power' case.
This comes barely a month after the retailer was fined 1.75 million euros (Sh222.5 million) by the Paris commerce court over unfair practices,a trend that is now reported in Kenya.
French retail chain Carrefour has suffered a major blow in Kenya after the Competition tribunal held that it abused its market power in what is set to be a big relief to more than 700 local suppliers.
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