A 742,000-euro fine was imposed on the food company Ainos, a seller of frozen vegetables, at the orders of Development Minister Kostas Skrekas on Monday. €
According to a ministry announcement, the fine was imposed for violation of article 54 of legislation passed in July 2023 for curbing unjustifiable profiteering, following checks conducted by the Interagency for Market Control (DIMEA).
Following inspections of 72 product codes, it was found that the company had a higher gross profit margin than that permitted by the relevant legislation.
Development Minister Kostas Skrekas stated: “The battle against high prices and price-gouging phenomena is constant and daily. The inspections will continue and intensify and where the law dictates, high fines will be imposed. We will not rest until law and order prevail in the market. The tackling of any illegal activity and the protection of consumers is our obligation. The government and the ministry’s only criterion is the implementation of the law and the support of households that are afflicted by inflation,” state-run news agency amna reported.
In a statement issued later on Monday, company AINOS said that the price controllers’ report is full of mistakes and inaccurate information and that they did not into consideration the production cost. The company added it would seek the legal way to have the fine revoked and to restore its reputation.
PS and to think that the fined company sells its products at lower prices than the market leaders – the ministry apparently hasn’t inspected yet.
Why is weekly shopping so inhibitivly expensive in Greece compared to average earnings ? . Somehow Greece still uses protective practices to discourage competition from other parts of the EU, just like phone charges tumbled when Vodafone arrived. The top three supermarkets in Greece have had it to good for too long.
So in the story above protection and low levels of competition by other frozen food companies encourages this behaviour. Tackle the basic problem and let the free market work.