Carrefour contests record fine of 200 million euros for "unbalanced" franchise contracts

 

Carrefour faces record €200m fine from To the French Ministry of Finance for practicali "contrary to the Commercial Code" îin the franchise contracts. The retailer denies the accusations and vehemently disputes the sanction.

Key details:

  • The reason for the fine: The Ministry accuses Carrefour of having imposed "unbalanced" clauses; in the franchise contracts, favoring the company at the expense of the franchisees.
  • Fine amount: 200 million euros, considered a "record civil fine".
  • Carrefour's reaction: The company denies the accusations and disputes the amount of the fine, considering it unfounded.
  • Market impact: Carrefour shares fell 7% on June 18 following the news.
  • Legal proceedings: DGCCRF asked the Commercial Court of Rennes to declare several clauses in the contracts null and void and to impose the financial penalty.
  • Number of franchisees affected: The case affects a small number of franchisees, about 200 out of more than 2,000.
  • Financial impact: Bernstein analysts believe that the financial impact of the contractual changes would be significantly lower than the proposed fine.