Morocco’s Competition Council Warns of Potential Café Price Hikes

In a statement from the interim general report, the Competition Council warns of a possible increase in the prices of beverages served in cafes. "As part of the monitoring of the competitive functioning of national markets, the preliminary investigations carried out by the competent services of the Competition Council, have made it possible to note elements according to which certain owners and managers of cafes, are studying a possible increase in the prices of beverages served in cafes. This information has been relayed by several press sources," it states.

In accordance with the provisions of Law 104.12 on freedom of prices and competition as amended and supplemented, the fixing of prices of products and services is determined by the play of free competition, except in the cases decided, on a limited basis, by this law, recalls the Competition Council, adding that the provisions of the same law prohibit concerted actions, agreements, explicit or implicit agreements or coalitions, whatever their form or cause. Especially when they aim to prevent, restrict or distort competition in a market, in particular when they aim to artificially raise or lower prices.

It is therefore not up to professionals or organizations to discuss any issue directly or indirectly related to prices or profit margins applicable, or to set them. If the facts are proven, the Competition Council will conduct an investigation into these practices prohibited by law: "In view of the foregoing and if the aforementioned facts are proven, the Competition Council will proceed to open an investigation on this subject and take all the legal provisions and measures vested in it, in accordance with its constitutional and legislative missions and attributions."