European Union Competition Commissioner Mario Monti has warned large northern European agricultural production cooperatives that they may in future be targeted by the European Commission to reduce their market power.
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In a speech to EU agricultural organisation COGECA, Monti said European rules limiting the freedom of action of large economic players deemed to have a “dominant position” in a sector should apply to large cooperatives. He noted some national farming cooperatives command market shares of 64-90%.
These “cooperatives may hold a dominant position,” he said, noting he could “see no reason why competition rules should not apply if such a cooperative abuses its dominance,” for instance by manipulating prices.
