Bonn, 30 September 2026 – Following EDEKA’s takeover of 178 tegut outlets, the Monopolies Commission has warned of a high level of concentration in the food retail sector. The Federal Cartel Office had approved the takeover subject to certain conditions.
According to the findings of the Federal Cartel Office, the four major retail chains already account for more than 90 per cent of turnover in the food retail sector. A key sector of the supply chain in Germany is therefore in the hands of just four companies.
The Authority also notes that the market is highly transparent and that prices are largely the same for part of the product range. Such conditions make it easier for companies to align their strategies with one another. Nor are any new market entrants expected. EDEKA, REWE, the Schwarz Group (Lidl and Kaufland) and ALDI have steadily expanded their dominant positions. In its special report ‘Competition in the Food Supply Chain’, the Monopolies Commission has shown that concentration has risen significantly over the past two decades, not least as a result of mergers. EDEKA’s takeover of the tegut branches continues this trend.
The Federal Cartel Office also assumes that some suppliers are dependent on the large retail groups. These manufacturers cannot simply switch to other buyers and are therefore at the mercy of the retailers’ terms. This can lead to abuses of buyer power. However, the Monopolies Commission’s analyses show that suppliers shy away from conflict with their powerful buyers. This makes it difficult for authorities such as the Federal Cartel Office to put a stop to such abuses.
It is a blow to competition that yet another retailer is disappearing from the market. The authorities will now have to be even more vigilant to ensure that the big four do not drive up prices or stifle innovation.
