Retail Law in Action

The Federal Antimonopoly Service is about to punish a retailer for breach of the retail trade law – the first time this has ever happened. According to the anti-trust watchdog, Metro Cash & Carry charged its suppliers for promotion according to turnover without consideration of the amount or complexity of the services - a violation of the law on state regulation in retail trade, which came into effect in February 2010.

The company may have to pay a fine of 50,000 - 120,000 euro. In 2010, Metro’s sales in Russia were 2.93 billion euro; worldwide – 31 billion euro.

This seems to be the first time that a retailer has been punished - but not the last. Recently, the Antimonopoly Service launched a case against ‘Auchan’ and ‘Attack’, the Russian branch of the French group Auchan. The hearing is scheduled for December 19. The FAS has also issued a warning to X5 Retail Group, the largest retailer in Russia.