Development Min.: 2,000,000 euro fines to multinational companies for unfair profiteering”

The maximum fine, amounting to 1,000,000 euros for each of the two multinational companies, for which the audit by the Inter-agency Market Control Unit (DIMEA) was completed, was imposed by the Minister of Development, Kostas Skrekas.

The fines concern the violation of article 54 of Law 5045/29-07-2023, regarding the reduction of phenomena of unfair profit.

Specifically:

· A fine of 1,000,000 euros to the company “PROCTER & GAMBLE HELLAS MONOPROSSOPI E.P.”.

· A fine of 1,000,000 euros to the company “ELAIS UNILEVER HELLAS SA”.

Skrekas: No one is above the law

The Minister of Development, Kostas Skrekas, said: “We have made it clear in all tones and in every direction that no one is above the law. We are determined to enforce the law to prevent profiteering and to stimulate healthy competition, for the benefit of the Greek family. Everyone must realize the criticality of the situation and the difficulty for households to access basic consumer goods. Dealing with inflation, and especially the inflation of greed, is primarily a matter of social responsibility but also of ensuring the cohesion of society. Checks will continue and fines will be issued without hesitation. The battle with inflation is ongoing. We are not complacent.”

It is recalled that yesterday it was announced that in the next few days the audit of seven multinational companies regarding the profit margins of their products would be completed “and, if a problem is found, we will not hesitate to impose fines” noted the Minister of Development Kostas Skrekas in an interview with alpha tv station about accuracy in the market.

Methodology

It is worth noting that according to an OT article, the tactic of the multinational giants to price their products at higher prices in Greece compared to other European countries with much greater purchasing power has long been targeted by the services of the Ministry of Development.

The methods applied by the multinationals to “inflate” the prices of the products in the Greek market by controlling 60% of the mass consumption products (food, detergents, household items, etc.), are neither hidden nor new.

The overpricing and underpricing of goods and services in such a way as to minimize the overall tax burden of the parent group, the imposition of high royalties on companies within the same group, high interest rates on loans from the parent to subsidiaries and the purchase of raw materials against expensive prices from commercial group companies based in other countries are the most well-known tactics used to raise the cost of products sold in countries where the multinationals do not have a productive but only a commercial presence.