Carrefour SA (CRERF.PK, CRRFY.PK) shares declined approximately 5% in Paris trading after reports emerged that France's finance ministry has requested a court to impose a fine on the French retailer concerning contracts with its franchisee stores.
According to the report, the ministry's General Directorate for Competition Policy, Consumer Affairs, and Fraud Control (DGCCRF) recommended a penalty of 200 million euros. The DGCCRF stated that its investigations had uncovered several group companies engaged in practices that contravene the French Commercial Code.
The ministry has asked the Commercial Court in Rennes to declare several clauses within the contracts binding the franchisees and the Carrefour Group null and void. Additionally, it has requested the imposition of a financial penalty on the group.
This development follows an earlier report from the French daily newsletter La Lettre, which published a legal complaint from the ministry alleging that Carrefour's contracts with franchisee stores exhibited a significant imbalance.
As of the latest trading in Paris, Carrefour shares were priced at 13.81 euros, reflecting a 5% drop.
