(FILES) This file photo taken on September 10, 2016 shows a McDonald's restaurant in Gettysburg, Pennsylvania. McDonald's announced on March 30, 2017 it will shift to fresh beef in its new made-to-order Quarter Pounder hamburgers in most US restaurants as it seeks to beef up sales in its home market. The fast-food chain by mid-2018 will shift away from frozen beef on the popular hamburger, which will be cooked at the time of order, the company said in a news release. The change, which does not affect the Big Mac and other beef products, follows a trial run in about 400 restaurants in Texas and Oklahoma that was well received. / AFP PHOTO / Karen BLEIER
BRUSSELS: French, German and Italian groups urged their national antitrust enforcers on Tuesday to look into alleged anti-competitive practices of McDonald’s, putting the US fast-food chain at risk of multiple investigations in Europe.
The three complaints share similar concerns about McDonald’s franchising terms and conditions, including prices set for products sold at franchises, saying consumers are charged more than at McDonald’s own stores as a result.
With more than 80% of its outlets worldwide not company-owned, franchising is an important business model for the company.
McDonald’s, the French, German and Italian competition authorities and the European Commission did not immediately respond to requests for comment.
In its complaint to the French competition authority seen by Reuters, French consumer body Indecosa-CGT, which has 672,000 members, said McDonald’s France forces franchisees to charge higher prices than at its own stores.
German law firm SKW Schwarz filed a similar complaint to the German cartel body on behalf of a group that it declined to name.
The document seen by Reuters cited anti-competitive clauses such as the tying of franchising deals with lease agreements, restrictions on suppliers and excessive rent for premises.
Italian consumer groups Codacons, Movimento Difesa del Cittadino and Cittadinanzattiva said on Tuesday they would withdraw a 2016 complaint to the European Commission because of the slow pace of procedure and take it to the Italian watchdog instead.
The national competition agencies can impose fines up to 10% of a company’s global turnover for breaches of antitrust rules as well as ordering them to stop unfair practices. - Reuters
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