Nutella maker Ferrero says it is undergoing EU inspections amid antitrust investigation
Posted by Ollyfer@reddit | anime_titties | View on Reddit | 22 comments
sebastianinspace@reddit
i’ve never understood the term “antitrust” when what is meant is “anti-monopolistic” or “anti-competitive”.
always felt like a newspeak term invented by companies explicitly engaging in anti competitive behaviour to rebrand it as something that makes no sense so that someone who doesn’t know what antitrust means won’t understand what is going on.
i realise it historically comes from the trusts that were established during the robber baron era of american history and the aftermath of this era, but i still don’t like the term. sounds stupid to me.
Ollyfer@reddit (OP)
I agree, although it would be weird to imagine those subject scrutinisation spelled out it's name and even more. I first came across it by means of two essays I read on tree trade, but naming the authors on this sub would mean to open Pandora's Box. Anyway, there I read about the Sherman Antitrust Act, where I funnily didn't question the name either. Hence, thanks for the context of the robber barons. Did the US in any state prior to independence have such figures? I only know them as the German „Raubritter” who'd raid villages in their ways, men like Götz von Berlichingen.
As for a better term, we speak of Kartellrecht in German, a term possibly coined by Ludwig Erhard who made fighting monopolisation in his postwar country a paramount issue. But in the US, cartels os a term already reserved for the Drug-trafficking organisations from its backyard.
sebastianinspace@reddit
yes at the turn of the century, there are famous american industrialists that owned entire industries, such as andrew carnegie (steel), john d rockerfeller (oil), and cornelius vanderbilt (railroads).
they established a business architecture in the form of a trust either a board of trustees that ended up being a consolidation of smaller business in the same market. in this way they could monopolise the entire industry and engage in price fixing and other unscrupulous behaviour. this led to the term robber barons. as those at the very top of the trusts were like barons, but stealing from their fellow countrymen and women like robbers or thieves.
kimana1651@reddit
This seems like such an odd ask. Are regulation, tax, shipping costs, and demand the same in all countries? Why would prices be the same across wildly different countries?
Melded1@reddit
What supermarkets want is to make more money, not cut costs. They are their own monopoly in most countries.
notarobat@reddit
You are misunderstood. The problem here is that prices are different in each country. But if I own a supermarket that is headquartered in Germany, I should be able to purchase my stock there and then sell it in different countries at different prices.
kimana1651@reddit
There is a problem that the distributor is trying to solve here. They want to sell stuff cheaper in poorer countries but they don't someone buying the cheaper price product in the poor region and selling it in the richer region. So when they sell it in the cheaper region they make the people buying it there agree not to sell it in the higher price regions.
Those_Silly_Ducks@reddit
Nutella hates the secondary market buyers, seems sus.
Professional-Syrup-0@reddit
We need DRM for Ferrero products and region lock them to the country of the original buyer
/s
buster_de_beer@reddit
Not so much, as one of the biggest complaints from certain countries is that products are more expensive for them than in other countries, and it is the poorer countries with higher prices. Nor is the distributor trying to solve that problem or even consider that a problem to begin with. They want the maximum price and they aren't worried about affordability only profitability.
Lugo_888@reddit
The solution would be to ignore manufacturer and stop selling their products if they don't want to play fair
Bruncvik@reddit
Not entirely. Tesco is selling a 350g jar in Slovakia for €5.39, and in Ireland for €3.49. The average wage in Ireland is about 3.8 times higher than in Slovakia, and transport costs to Ireland should be higher than to Slovakia.
This has been a sore spot in many poorer countries. They are receiving either inferior products, pay more, or both. I have relatives in Slovakia, near the border with Austria, and they are traveling across the border for cheaper weekly shopping.
jcw99@reddit
not quite. Basically at the moment ferrero will sell you the same good at different wholesale prices in different parts of the EU (not just transport fees ect), and then alegedly black list you from their distribution network if you sell outside of your region.
This goes against the principle of the single market which means that there shall be no barriers or fees for goods moving across it. I.e this should be as ridiculous as someone in the US trying to stop you from buying goods in Chicargo IL, and selling them in St. Luis MO
Professional-Syrup-0@reddit
They are not demanding same prices everywhere, they are demanding exactly what you are saying: Prices should reflect the local costs and incomes.
With Ferrero products that’s often not the case, in EU countries with lower incomes their products are regularly priced more expensive compared to the same products in high income countries.
Reapr@reddit
Nutella Costs roughly 4 times as much here as in say Switzerland whereas other products from Europe does not, not saying this is the reason, but I have certainly wondered before why it costs so much here
jcw99@reddit
Switzerland not being an EU member country and not being part of the single market is the exception here.
They also have steep import tariffs on food to protect their, small but in their eyes strategically vital, domestic food production which being a mainly mountainous country has very high costs.
Reapr@reddit
In the UK, 650g of Nutella is 5.20 according to the Tesco website, that translates to roughly 47 ZAR - but it costs over R200 ZAR here, I don't understand why, shipping, tarrifs and taxes surely can't amount to over 400%
jcw99@reddit
Ok, but the price difference between South Africa and the UK is irrelevant when it comes to the discussion about the EUROPEAN UNION single market and its rules.
Reapr@reddit
Ok, I retract my statement about Switzerland, seeing as it is irrelevant
thbb@reddit
Seems well deserved, as they appear to have 100% market share beyond the earth atmosphere, and got a free major publicity boost from the latest moon mission.
Professional-Syrup-0@reddit
On German TV it feels like every other ad is for some Ferrero product, and it’s been like that for years
Like they’re marketing budget is near single-handedly responsible for keeping TV still alive in Germany lol
Ollyfer@reddit (OP)
I mean, classical TV is on its last legs anyway, no matter where you look, it would make sense that ads are the last thing that keep them on the line. Licenced shows have to amortise themselves first, and that may take some time with gradually lower audience numbers.