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“Two-thirds of inflation in the euro zone comes from corporate profits”, indicated Monday on franceinfo Benoît Cœuré, the president of the Competition Authority, before recalling that it is possible to sanction companies up to 10% of their turnover.
“There is a risk that inflation will last longer than necessary if companies take advantage of it to raise prices beyond their cost increases”, warned Monday, June 19 on franceinfo Benoît Cœuré president of the Competition Authority, former member of the executive board of the European Central Bank (ECB). Inflation still does not fall while the prices of raw materials and energy are down.
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The Autorité de la concurrence warns against “excessive profits” made by companies in these times of galloping inflation. “The central bank usually says two-thirds of inflation comes from wages. Wages are actually quite moderate, pretty well held up. Two-thirds of inflation in the euro zone comes from corporate profits”explained Benoît Cœuré.
The sale of train tickets and household appliances under surveillance
According to Benoît Cœuré, it is normal for companies to pass on increases in their costs: “This is quite understandable”but “sometimes they go beyond when they have market power”, he regretted. French companies behave rather better compared to their European neighbours: “In France, it is rather less true than in Germany than in Spain and than elsewhere in the euro zone. But it is a risk on which we must be vigilant”he estimated.
Benoît Cœuré cited a few sectors under surveillance: “The sale of train tickets, for example the collection of milk, for example in household appliances, for example in electrical equipment”. Companies that exceed the limits risk financial penalties: “On average, for ten years, the Competition Authority has imposed around 700 million euros in sanctions per year. The law says that companies can be sanctioned up to 10% of their turnover. global business”he said.
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Not all superprofits are illegal, he reminded us: “If we have companies in France which are efficient, which are profitable, we should be happy about it. That means that we have companies which are there, which are well managed and profitable”.