The French authorities demand a fine from Carrefour

Yesterday, the French Ministry of Finance requested in court to fine Carrefour for the contracts with franchised stores that contain "significant imbalances", reports Reuters.

A press release from the General Directorate for Competition, Consumerism and Fraud Prevention (DGCCRF) states that, following an investigation, it was discovered that some companies in the group engaged in practices contrary to the French Commercial Code. The DGCCRF asked the Court of Rennes to declare null and void some clauses of the binding contracts between the franchisees and Carrefour, and to impose fines on the group.

Carrefour disputed the "complaints" of the Ministry of Finance, noting that it is intervening in a dispute that started a few months ago without providing new information on the merits, and announced "that it has full confidence" in its ability to demonstrate the validity of the contracts . The retailer assessed the level of the fine as unfounded, notes Agerpres.

The complaint of the Ministry of Finance is part of the legal procedure initiated by almost 170 franchisees at the end of 2023, stated the DGCCRF.

Le Lettre published a 160-page subpoena in which the accusations against Carrefour are presented and a record fine of 200 million euros is recommended.

Following the appearance of the information, Carrefour's shares fell sharply, reaching the lowest level since November 2020. Bernstein company analysts maintain, however, that investors' reaction to the report was exaggerated. "We believe this case concerns a small number of franchisees, almost 200 out of over 2,000 franchisees," according to Bernstein.

The legal document requires the company to immediately amend around ten clauses in the franchise contracts, with a fine of 50,000 euros per day imposed if no action is taken.

Among the clauses is the requirement to supply almost exclusively from Carrefour.

Carrefour aims to obtain half of its revenues in France from franchised stores, said general manager Alexandre Bompard.