French retailer Carrefour has announced it will appeal the Competition Authority of Kenya’s (CAK) decision to slap it with a Ksh.1.1 billion fine for abusing buyer power privileges.
In a statement on Wednesday, December 20, the retailer which is owned by UAE-based entity Majid At Futtaim said it was surprised by the decision since the complaint had been withdrawn and renewed partnership agreements with Woodlands Company Limited and Pwani Oils Limited signed.
“Majid Al Futtaim was surprised by the recent decision made by the Competition Authority in Kenya, which comes despite the withdrawal of complaint and renewed partnership agreements that have been signed with Woodlands Company Limited and Pwani Oils Limited. Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority’s decision,” read the statement in part.
The retailer noted that it maintains a strong network of over 700 supplier partners, 300 of whom have been valued partners since it began operations in Kenya in 2016.
Despite the fine, the retailer said it will continue working to benefit customers, partners, and stakeholders to ensure a meaningful contribution to Kenya’s development agenda in creating a globally competitive and prosperous nation through sustainable business operations and our long-term social support and initiatives in education, health, social inclusion, and poverty eradication.
“As a leading regional retailer, Majid Al Futtaim is committed to upholding the highest standards of global best practice, including antitrust and competition laws to encourage fair competition in all aspects of its businesses,” the statement added.
CAK on Tuesday accused Carrefour of abusing its buyer power over its suppliers and fined Sh 1.1 billion.
According to the authority, its investigations had established that Carrefour charged its suppliers at least three types of non-negotiable rebates that are as high as 12 percent.
“In executing this mandate, the Authority has pursuant to investigations penalized Majid Al Futtaim Hypermarkets Limited, which trades in Kenya under the brand name Carrefour, a total of Sh. 1,108,327,873.60 for separately abusing its superior bargaining position over two of its suppliers – Pwani Oil Products Limited and Woodlands Company Limited,” the regulator stated.
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