March 26 (Reuters) - Italian competition regulator AGCM said on Thursday it had launched an investigation into Edenred and its Italian unit, citing possible abuse of its dominant position in the
Italian regulator probes Edenred over possible abuse of market position
Investigation into Edenred's Market Practices
By Mateusz Rabiega
March 26 (Reuters) - Italian competition regulator AGCM said on Thursday it had launched an investigation into Edenred and its Italian unit, citing possible abuse of its dominant position in the country's employee meal voucher market.
Regulator Actions and Inspections
The watchdog said its officials, together with the Italian Financial Police, carried out inspections at the premises of Edenred Italia on Wednesday.
Edenred's Response to the Investigation
Edenred said in a press release it was "at the disposal" of the AGCM to provide all necessary explanations, but declined to comment on the investigation while it was ongoing.
Impact on Edenred's Shares
The French group's shares fell around 12% in early trading to their lowest price in nearly 10 years.
Details of the Alleged Abusive Practices
Unjustified Costs and System Changes
"Edenred is thought to have implemented a complex strategy aimed at shifting entirely unjustified costs onto large-scale retail chains," the AGCM said in a statement. It said the French company appeared to have unilaterally changed the way electronic meal vouchers were accepted.
Third-party Interconnection Requirement
Instead of allowing retailers' checkout systems to connect directly with its platforms, Edenred reportedly required them to use third-party interconnection providers, increasing operating costs for large retail groups.
Other Unfavourable Conditions
"It seems Edenred also imposed other unfavourable conditions, such as longer voucher reimbursement periods," said the regulator, adding that the greater complexity and higher costs for retail chains may lead to higher consumer prices and affect the functioning of the market.
Edenred's Confidence in Compliance
Edenred said it was confident about the outcome of this investigation, citing "strict respect" for meal voucher regulations in Italy.
(Reporting by Mateusz Rabiega in Gdansk, editing by Milla Nissi-Prussak)
