Chain guilty of selling below cost

HAMBURG: Edeka's discount supermarket chain Netto Marken-Discount has been found guilty of selling below cost by the German cartel office, Bundeskartellamt. The retailer breached the rules by repeatedly selling dairy products at up to 40% below the price it had paid for them. German law allows retailers to offer products below cost "occasionally". But promotions are not occasional if they occur for more than three weeks within a six-month period, regardless of whether the three weeks are consecutive. Within a 10-week period between December 2006 and February 2007, Netto Marken-Discount ran at least four one-week promotions, the cartel office said. The retailer now faces a possible fine.