A PYMNTS Company

EU: McDonald’s accused of antitrust practices in France, Italy and Germany

 |  April 4, 2017

McDonald’s is facing antitrust complaints in France, Germany and Italy for allegedly abusing its market power to force franchisees to charge higher prices than in stores it operates directly.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    McDonald’s also charges excessively higher rents for franchise locations and imposes terms that restrict franchisees from shifting to other brands, the complaints allege.

    For consumers in France alone, the alleged tactics in 2015 added up to an estimated $247 million, or 232 million euros, in higher McDonald’s prices, according to the complaint being filed with the French Competition Authority by Indécosa-CGT, the Association for the Information and Defense of Salaried Consumers.

    McDonald’s franchisees set their own menu prices, and the company works closely with the operators “so they have the support they need to operate their restaurants and provide a great quality, experience, and convenience for our customers,” company spokeswoman Terri Hickey said in a formal statement.

    Full Content: Bloomberg

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.