Consumers Overcharged Due to Delivery Restrictions

The Central Bureau of Grocery Trade (CBL) responds positively to the recent investigation by the Ministry of Economic Affairs and Climate (EZK) into territorial delivery restrictions (TDRs). The report confirms what was previously established by the European Commission: TDRs cost European consumers at least €14 billion annually in unnecessary expenses for daily groceries. Remarkably, this phenomenon also drives up consumer prices, limits product availability, and boosts profit margins for manufacturers in the Netherlands.

The CBL commends the government's initiative to conduct this investigation, revealing that after thirty years of European market operations, it is evident that the system is not functioning properly. According to the report, the consequences of TDRs are threefold: consumers pay more, product availability is restricted, and manufacturers see increased profit margins.

Supermarkets have long experienced the hindrances of restricted purchasing within the internal market, resulting in unnecessarily high prices for consumers and, in some cases, the absence of products from shelves.

The CBL emphasizes the need for a European approach, considering it crucial. The report serves as a robust starting point, urging action at the European level to eradicate TDRs and establish a fully functioning internal market. The proposed two-pronged solution includes a Business-to-Business (B2B) Geoblocking Regulation and the mandatory implementation of 'EU-proof' labels, streamlining trade within the EU.

The CBL's call for the Dutch government to advocate for European legislation against geoblocking and the harmonization of labeling requirements is reinforced by a urgent plea to the European Commission and the European Parliament to include a ban on TDRs in next year's election programs. Marc Jansen, director of the CBL, hopes that after thirty years, the European internal market will be restored to unity.

Read the accompanying reports:

‘Territoriale leveringsbeperkingen’ by the Ministery of Economics and Environment
‘Study on territorial supply constraints in the EU retail sector’ by the European Commission
Position paper ‘Territoriale leveringsbeperkingen’ by CBL

Cbl.nl