14 November 2002

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Germany's High Court says Wal-Mart's price war hurts competition

Wal-Mart's price war hurts smaller stores and limits competition. Earlier this week, Germany's highest court ruled against the retail giant and ordered it to stop selling basic groceries below cost. The court considered that competition rules were violated, to the detriment of particularly the smaller competitors.

The court ruling follows an aggressive price war, which has involved particularly Wal-Mart, Aldi and Lidl. The two hard discounters have already earlier heeded to a September 2000 decision by the Federal Cartel Office and raised their prices on items such as milk, butter, flour and cooking oil, which were sold below their own costs.