McDonald’s is facing antitrust complaints in France, Germany and Italy for allegedly abusing its market power to force franchisees to charge higher prices than in stores it operates directly.
McDonald’s also charges excessively higher rents for franchise locations and imposes terms that restrict franchisees from shifting to other brands, the complaints allege.
For consumers in France alone, the alleged tactics in 2015 added up to an estimated $247 million, or 232 million euros, in higher McDonald’s prices, according to the complaint being filed with the French Competition Authority by Indécosa-CGT, the Association for the Information and Defense of Salaried Consumers.
McDonald’s franchisees set their own menu prices, and the company works closely with the operators “so they have the support they need to operate their restaurants and provide a great quality, experience, and convenience for our customers,” company spokeswoman Terri Hickey said in a formal statement.
Full Content: Bloomberg
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