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The Hungarian Competition Authority (GVH) is investigating the implementation of the commitments made by SPAR Hungary in a follow-up investigation, reports Világgazdaság. The company promised to establish a new regional supplier system, increase the sales opportunities for Hungarian small-scale suppliers and create new jobs. The ongoing proceedings are investigating whether SPAR has implemented its commitments under the reparation scheme.
In addition to finding infringements, the GVH’s Competition Council also has a complex commitment program of HUF 1.7 billion (EUR 43 million) against the company as a result of the proceedings. This included the creation of entirely new jobs that did not previously exist.
SPAR undertook to set up six regional supply centers (Győr, Hódmezővásárhely, Nyíregyháza, Pécs, Székesfehérvár, Zalaegerszeg) to increase sales opportunities for Hungarian small local suppliers.
The company has pledged that 90 percent of the regional scheme will provide opportunities for new micro, small and medium-sized suppliers. It has also committed to provide training in quality auditing, logistics, warehousing and marketing to help suppliers.
In all cases, the implementation of the commitments is subject to consistent and rigorous scrutiny by the authority. The GVH reminds companies of the need to comply accurately and fully with the obligations set out in its decisions. In the event of failure to comply or failure to provide proof, the GVH may impose significant fines on the undertaking concerned. It is worth recalling that the Hungarian competition authority imposed a record-breaking fine of almost HUF 400 million (EUR 1 million) on Booking.com in July 2024.
SPAR sent the following reaction to Világgazdaság: “In each case, the commitments will be examined by the competition authority, in which SPAR will cooperate with the GVH and, as in the past, will provide evidence of compliance with the commitments.
SPAR Hungary launched its “Régiónk kincsei” program in 2021 to bring high-quality artisanal products of local small producers to the market. The company has set up centers in six cities with county rights – Székesfehérvár (central Hungary), Zalaegerszeg (western Hungary), Hódmezővásárhely (southeastern Hungary), Nyíregyháza (northeastern Hungary), Pécs (southwestern Hungary) and Győr (northwestern Hungary) – and in Budapest, where Hungarian micro and small businesses, producers, craft firms, small wineries and breweries can sell their products to the region.
Under the commitment, the company has created 23 new jobs.
SPAR only selects products made in Hungary, preferably with local ingredients, for which it is important to have a link to the region and create value for the producer. This gives local partners the opportunity to supply their high-quality products from within a few tens of kilometers of the regional center, shortening supply chains and minimizing the environmental impact. SPAR Hungary currently distributes 533 products from 122 suppliers under the program. Together, the companies participating in the program, supporting rural producers and small businesses, employ more than 600 people and help to safeguard jobs and create new jobs in small areas where larger companies are less present.
Although the commitment was for three years – until 31.12.2023 – SPAR will continue to operate and manage its small business support program.”
Via Világgazdaság; Featured image via Pixabay