Competition watchdog to investigate 'worrying' persistence of high prices
Belgium's competition watchdog is launching an investigation into price indexation mechanisms that may be fuelling inflation and violating competition rules, as profit margins in some sectors "show a worrying trend" and have risen sharply recently.
The Belgian Competition Authority (BMA) is planning a general investigation into price increases in various sectors of the Belgian economy, it announced on Thursday.
Profit margins in some sectors show a "worrying trend"
The country's central bank previously said there was no general greedflation in Belgium, where companies raise prices more than necessary to cover rising costs. However, the BMA said profit margins in some sectors were "showing a worrying trend" and had risen more than in neighbouring countries in recent years.
Harming consumers and economy
These findings underpin the inquiry it is now launching, the aim of which is to "objectively assess the persistence of higher prices in Belgium due to the potentially anti-competitive nature of certain sectoral price review and indexation mechanisms".
These mechanisms can distort the efficient functioning of markets to the detriment of consumers and ultimately the general economic welfare, the BMA said.
"There are a number of price indexation practices that we want to look at," said BMA president Axel Desmedt. "We will identify these mechanisms and find out how they work, how they justify price increases and what are the good and not so good practices."
Key sectors under review
The BMA wants to map everything out in collaboration with the sectors themselves, as indexation mechanisms may often be perfectly permissible and justified. "It is far too premature to talk about potential infringements," the organisation said.
The BMA's findings are expected in early 2026
The study will cover "several key sectors of the economy that have been identified as being particularly affected by indexation mechanisms". When asked which sectors were affected, Desmedt preferred not to elaborate.
In Belgium, the law prohibits the indexation of prices "on the basis of general indices", although there are a number of exceptions, including for rents and notaries' fees. The BMA's findings are expected in early 2026.
© PHOTO IMAGEBROKER
Related news
