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Retailer admonished in competition drive

The Coop retail chain faces a warning by the authorities after the entry of a German competitor into the Swiss market in December.

The Competition Commission said on Thursday it would open an enquiry if complaints proved justified that Coop hindered suppliers trying to do business with other retailers.

A previous examination had come up with no conclusive result.

However, the commission president, Walter Stoffel, said consumers were benefiting from the increasing competitive pressure on the Swiss retail market.

He also cautioned against significant market distortions in the wake of the global economic crisis.

Stoffel said the regulatory and competition authorities might have to step in to limit the potentially negative impact of government intervention in the economy.

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