Filenews 24 May 2023 - by Eleftheria Paizanou
The Government waited to hear one thing yesterday in Parliament about the digital tool for presenting - comparing prices of basic products e-kalathi and others it heard, resulting in a reaction initially with a brief outburst of anger from the Minister of Commerce and late in the afternoon with a statement by the government spokesman, who expressed regret "for obstacles brought once again by AKEL and DISY MPs" on the bill on e-kalathi.
MPs, mainly from DISY and AKEL, professional bodies and the Committee for the Protection of Competition expressed doubts about the effectiveness of the measure, calling on the Government to make improvements to the bill "so as not to harm competition". The position of Kyriakos Hatzigiannis of DISY, who had expressed one position last November - during the previous government - and another yesterday caused an impression. The sole ally of the Government in yesterday's debate in the Trade Committee was the co-governing parties DIKO and DEA. In the afternoon, EDEK joined them with an announcement.
As the debate unfolded, it seems that the bill will not easily pass, as it stands, the pitfall of the House. The Minister of Commerce expressed intention to discuss some comments made on the bill by representatives of professional bodies.
Energy Minister George Papanastasiou presented to the Trade Committee the bill, through which e-kalathi will be implemented, which will initially post daily the prices of 350 products from food businesses with an annual turnover of €2 million. and above, so that consumers can compare points of sale, depending on the prices of the products they are interested in and choose.
PSC: They will become cartels
The statements of the representative of the Commission for the Protection of Competition (PSC) turned the debate upside down. Specifically, Antonia Aristodemou argued that e-kalathi will lead to distortions in competition, with the possibility of cartels. As he explained, by posting product prices, businesses will monitor their competitors and some businesses will change their prices based on the pricing policy followed by other companies in the industry. At the same time, he said that Greece was fined because the publication of petroleum product prices on an electronic platform led to an increase in prices instead of their decrease, due to phenomena of concerted practice.
The competent minister responded immediately, expressing his surprise at the position of the PSC, commenting that "our culture does not accept transparency" and pointing out that some control the market. He also said that fears are channelled into the market to cover the positives of the digital tool and wondered whether competition is affected by the publication of fuel prices by petrol stations on the website of the Consumer Protection Service.
Affected party disputes
The president of the Pancyprian Supermarket Association, Charalambos Papantoniou, called on Parliament to reject the bill, as, according to him, it will be a gravestone for businesses. He spoke of unequal competition between large and small businesses.
The representative of the CCCI spoke about competitive pressures in the market, while OEB called on the Government to review the bill.
The Association of Consumer Suppliers said the bill would dissolve small and medium-sized enterprises.
POVEK, for its part, argued that the bill is not moving in the right direction, as it will not bring about a reduction in prices.
A representative of the Pancyprian Retail Association noted that the respective application did not work for the reduction of prices in Greece.
Consumer associations also expressed reservations on some points, calling on the ministry to make improvements to the bill.
Hatzigiannis turned it around
Within six months, DISY changed its position on this issue, something that Chrysis Pantelides pointed out. Yesterday, the chairman of the Trade Committee and MP Kyriakos Hatzgiannis referred to a "tool of an administrative nature", arguing that e-kalathi simply creates expectations in the market, but will not improve the market.
It is worth mentioning that in November '22 (DISY was in government) when the issue was discussed ex officio in committee, Mr. Hatzigiannis had welcomed the policy studied by the then Government on the household basket, saying that it would serve, among other things, transparency.
DISY MP Averoff Neophytou said the bill favours large supermarkets and is a trap for consumers. As he said, the state will make free advertising in large supermarkets, with touted products, at the expense of small supermarkets.
AKEL MP Kostas Kostas stressed the need for further consultation so that the measure is as effective as possible. He also said that the main source of the price is electricity and fuel prices, something that e-kalathi will not address.
DISY MP Chrysis Pantelides expressed his surprise at the positions of DISY MPs, recalling their earlier reports. He said that this is not state intervention in the market, categorically rejecting the positions of influencing competition.
MP Michalis Giakoumi noted that transparency should not be intimidated and competition should be sought.
