Proponents of stricter competition oversight argue that the current dominance of Germany's four largest retail groups has created a structural imbalance that threatens the long-term health of the food supply chain. By controlling the vast majority of the market, these companies possess immense leverage over suppliers, particularly small and medium-sized farmers and manufacturers who lack the power to negotiate on equal terms. Supporters of reform believe that without intervention, this power will continue to be used to squeeze margins, potentially forcing smaller producers out of business and reducing the variety of goods available to consumers.
Furthermore, advocates for tighter regulation point to the 'verticalization' of the retail sector, where supermarkets are increasingly becoming their own suppliers. When a retailer also owns the production facilities for the goods they sell, it creates a conflict of interest that can stifle competition from independent brands. By empowering the Federal Cartel Office to more closely scrutinize mergers and business practices, the government can ensure that the market remains open to new entrants and that innovation is not stifled by a few massive corporations.
Ultimately, this perspective emphasizes that a healthy market requires a level playing field. While consumers have benefited from low prices in the past, supporters of reform argue that these prices should not come at the cost of a fair and diverse economy. Strengthening oversight is seen as a necessary step to prevent the abuse of market power and to ensure that the benefits of the retail sector are shared more equitably among farmers, manufacturers, and consumers alike.