The ceiling on the profit margin from the sale of baby milk will be tabled in the Council of the Territory.
The “Association of Children’s Food and Special Nutrition Businesses of Greece” appealed to the Supreme Court of Cassation, which represents the largest companies active in Greece in the field of infant and child nutritionsuch as Nestle, Nymil, Nutrition, Giotis, etc.
The link in question claims that the ceiling introduced by the Ministry of Development is unconstitutional, violating business and economic freedom, free competition, the principle of equality and the distortion of free competition, but also that the ceiling prices are arbitrary and below the cost of production and distribution. Apart from being unconstitutional, the appellant argues that the cap is against European legislation.
According to the government decision, companies that produce and market infant and second-age milk are required to send to the Interagency Market Control Unit (DIMEA) the data for determining the amount of operating costs in order to apply the ceiling on the profit margin.
The ministerial decision provides that the gross profit margin cannot be greater than the operating cost of the business in this product category based on the financial statements of the immediately preceding management period plus 7% of net sales, minus discounts, credits or other benefits.
dnews.gr
Tags: Baby milk Association Baby Food Companies appeals ceiling selling price
