The Office for the Protection of Economic Competition (ÚOHS) has completed its examination of price developments in the Czech food market and has found no evidence of economic competition violations, including abuse of dominant position or indications of cartel agreements. Petr Mlsna, Chairman of ÚOHS, announced the findings during a press conference, stating that the market is responding to the increase in input costs and therefore does not recommend implementing price regulation.

The investigation by the antimonopoly office was initiated after a rapid increase in food prices last autumn. The focus was on the pricing of milk, butter, eggs, flour, and chicken meat. The analysis covered price developments since 2018, considering five significant events that could have influenced price increases, such as the energy crisis and the war in Ukraine. Separate investigations are also being conducted on sugar prices.

During the inquiry, the office engaged with over 200 companies across the supply chain and more than 14 industry associations. The findings revealed that the highest margin for all five commodities was observed in the production-trading chain, primarily at the level of primary producers. Rising input costs, including energy and transportation, have impacted margins at each stage of the supply chain.

Petr Mlsna emphasized that past experiments with price regulation in the food sector have ultimately led to higher prices for consumers, as suppliers prioritize exports over serving the domestic market. Therefore, the antimonopoly office does not see price regulation as a recommended solution.

The prices of the analyzed commodities started to rise following the outbreak of the war in Ukraine and were further influenced by increased energy prices. The avian flu pandemic also impacted chicken meat prices. Representatives from all parts of the supply chain attributed the margin increases to rising energy and transportation costs due to fuel price hikes.

The Ministry of Agriculture had previously requested ÚOHS to investigate high food prices, particularly the significant increase in sugar prices in the autumn. Food inspections conducted by the Czech Trade Inspection (ČOI) and the State Agricultural and Food Inspection (SZPI) revealed several violations in terms of food law and consumer protection law, as confirmed by Vojtěch Bílý, the spokesperson for the Ministry of Agriculture.

The findings of the antimonopoly office’s examination provide valuable insights into the dynamics of the Czech food market and the factors contributing to price increases. While no violations were identified, the report highlights the impact of rising input costs throughout the supply chain. The decision against price regulation aligns with the office’s assessment that such measures may have unintended consequences for consumers.