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In July 2020, the European Commission published a study on territorial supply constraints in the EU retail sector (TSC study). The TSC study purported to have found evidence for the widespread use of TSCs. The study also presented an econometric estimate of the consumer harm allegedly resulting from TSCs.

AIM retained us to assist in assessing the TSC study and summarizing our conclusions in a report. The NERA team reviewed the existing barriers to trade across the Member States arising, for example, from regulatory hurdles and transport costs. The NERA team also reviewed the economic literature analyzing the welfare effects of differential pricing. Using this as background, we assessed the survey methods and other evidence the study relies on for its claim of the widespread use of TSCs. Lastly, the NERA team reviewed the econometric analysis used by the study to establish the harm allegedly suffered by consumers because of TSCs.

On 9 December 2022, AIM published the NERA report evaluating the TSC study. The report concludes that, because of various data and methodological flaws, the TSC study fails to provide evidence for the existence of TSCs. Our report also found the alleged harm resulting from TSCs is entirely fictitious.

For more details, please find the NERA report here.