The complaint claims that McDonald’s abuses its dominant market position and harms consumers by charging its franchisees rents that exceed market rates by up to 10 times and by limiting their ability to switch to other brands.
Alleged tax evasion
The complaint, which is backed by the Service Employees International Union (SEIU) and European trade unions, comes a month after EU regulators began an investigation into McDonald’s tax affairs in Luxembourg. The unions claimed that the company had avoided about €1bn ($1.09 billion) in taxes by channelling royalties to Luxembourg.
Potentially massive fines
The European Commission, the bloc’s top antitrust authority, said it would look into the complaint. It may open a full investigation after inspecting the evidence, though this is far from certain. Companies found guilty of violating EU antitrust law face fines of up to 10 per cent of their global revenue. Source: MarketWatch; Reuters
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