"Italian Fair Trade Commission Investigating Unfair Contracts at McDonald's Franchise Stores"

"Three Franchise Owners Report McDonald's to Italian Authorities"
Expected Fine Equivalent to 10% of Sales if Violations Confirmed

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Italian Competition Authority (AGCM) is reportedly investigating the fast-food chain McDonald's on suspicion of coercing franchisees into unfair contracts, according to major foreign media. If violations are confirmed, McDonald's is expected to face a hefty fine amounting to 10% of its sales revenue in Italy.

On the 9th (local time), major foreign media reported that AGCM has launched an investigation into McDonald's for allegedly imposing unfair burdens and discriminatory contracts on its franchisees in Italy regarding pricing, marketing, inventory, purchasing, and financial management while operating its franchise business.

The investigation was initiated after three McDonald's franchisees in Italy filed a complaint with AGCM in March, accusing McDonald's headquarters of unfair rent, royalties, investment, and sales policies related to its franchises, according to major foreign media. It is also known that several consumer protection organizations in Italy submitted similar petitions to AGCM back in 2017.

If AGCM's investigation confirms that McDonald's violated franchise business laws, McDonald's is expected to be fined a substantial amount equivalent to 10% of its total sales revenue. McDonald's stated, "We are not yet aware of the details of the investigation initiated by AGCM, but we are prepared to cooperate with the authorities," according to major foreign media.

This content was produced with the assistance of AI translation services.