The Finnish Competition Authority proposes that the Market Court state that Kesko Corporation had engaged in a practice that was contrary to Section 4 of the Act on Competition Restrictions in force at the time in the K-market and K-neighbourhood chains in 1997-2000 and in the K-extra chain in 1999-2000. In the Finnish Competition Authority's view, Kesko Corporation had demanded that the prices decided in horizontal chain organs be observed in all chain stores. On the basis of this, the Finnish Competition Authority presents to the Market Court that it impose a sanction of 100,000 euros on Kesko Corporation. The matter is pending in the Market Court.
Until the end of the year 2000, the operations of the K-Alliance were based on mutual horizontal co-operation of retailers. At the beginning of the year 2001, the food store chains adopted a vertically managed system between Kesko Food Ltd, a Kesko Corporation subsidiary, and the retailers.
Information about the Finnish Competition Authority's proposal draft was given in the press release on 9 August 2004.
Further information is available from Erkki Heikkinen, Senior Vice President, Corporate Communications, tel. +358 1053 22721
KESKO CORPORATION
Corporate Communications
Corporate Communications
Erkki Heikkinen
Senior Vice President
Senior Vice President
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Helsinki Stock Exchange
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Helsinki Stock Exchange
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