The Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, AGCM) has launched a wide-ranging fact-finding investigation into the role of large-scale retail distribution in the agri-food supply chain, amid growing concerns over food price inflation and the distribution of value between producers, retailers and consumers.
The inquiry comes in response to a growing divergence between overall inflation and food price growth in Italy. Data from ISTAT, referenced by the Authority, show that between October 2021 and October 2025, food prices increased by 24.9%, outpacing the 17.3% rise in the general consumer price index over the same period. Amid these trends, agricultural producers have expressed concern that their profit margins have not kept pace with rising consumer costs, highlighting a potential imbalance in bargaining power between farmers and large-scale retail chains.
The Authority’s investigation will focus in particular on the relationship between distributors and suppliers, which is seen as a critical point in the agri-food value chain. This interaction plays a central role in determining both the remuneration of upstream producers and the final prices paid by consumers.
As part of the inquiry, the AGCM will examine how large-scale retailers exercise purchasing power, including through collective purchasing arrangements such as cooperatives and centralized or super-centralized buying structures. The Authority will also analyse commercial practices whereby retailers charge suppliers for a range of sales-related services, including product listing, shelf placement, promotional activities and the launch of new products—often referred to as trade spending. In addition, the investigation will assess the expanding role of private-label products and their impact on suppliers and market dynamics.
Beyond its implications for the agri-food sector, the Authority noted that these issues raise broader competition concerns. The way retailers manage purchasing strategies, supplier services and private-label positioning can significantly influence competition among retail chains themselves and directly affect price formation at the consumer level.
The launch of the investigation is accompanied by a public consultation. Market participants and other interested stakeholders are invited to submit observations and contributions to the Authority by 31 January, as the AGCM seeks to build a comprehensive picture of competitive conditions and pricing mechanisms within the agri-food supply chain.
The fact-finding exercise does not in itself imply any finding of infringement but may inform future regulatory or enforcement actions aimed at ensuring fair competition and balanced value distribution across the sector.