We will actively work with representatives of distribution companies and market chains to achieve price reductions for our fellow citizens - I would like to ask the Parliament of Georgia to establish a parliamentary commission that will use the relevant parliamentary levers to assess the issue, - Georgian Prime Minister Irakli Kobakhidze says in a video message on consumer prices.

The head of government also called on law enforcement agencies to conduct an in-depth study of the issue.

“We will actively work with representatives of distribution companies and market chains to achieve price reductions for our fellow citizens. If necessary, we will also use anti-monopoly mechanisms proven in various countries for this purpose. I call on law enforcement agencies to study the issue in depth and determine whether there are signs of criminal offenses in the activities of specific subjects. I would also like to ask the Parliament of Georgia to establish a parliamentary commission that will use the relevant parliamentary levers to assess the issue,” Irakli Kobakhidze noted.

According to Kobakhidze, “In conditions of high profit margins, companies are rapidly expanding their network of markets.

“Over the past 5 years, the number of network markets in the country has doubled. As a result, today in Georgia there are 113 markets per 100,000 people, while in Germany this figure is 45, and in Austria it is 62. It is logical that the costs associated with network expansion are directly reflected in product prices. Based on a preliminary analysis, several main factors can be identified that determine high markups and, accordingly, high prices. For example, this is the so-called network cashback, the fee charged for entering the store, delays in paying distributors or manufacturers, the abundance of stores and the reflection of the cost of opening a new store in the price, etc. Most importantly, the current practice raises suspicions that market players may have acted in concert, on the basis of a cartel principle, which, naturally, requires additional analysis," the Prime Minister notes.