More Relaxed Than Advanced Countries Like the US and France [Reversing Distribution Regulations]

⑨Major Countries Ease Distribution Company Regulations to Secure Global Competitiveness

USA: No Regulations Allow Free Entry of Large Retailers... Effects Such as Price Reduction
France: Trend Toward Relaxing Store Opening Scope and Sunday Operation Regulations
Japan: Preparing 'Win-Win Plans' to Promote Regional Balanced Development Rather Than Direct Regulation

Customers are purchasing ingredients at a large supermarket in Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Moon Hyewon] Major countries overseas such as the United States and France are pursuing policies to secure global competitiveness by easing regulations on distribution companies.

According to the industry on the 18th, although the details vary by state in the United States, there are no specific laws regulating the opening or operating hours of large distribution companies except for local land use ordinances. In addition, there are no direct distribution regulations on retail stores, allowing large companies to enter freely. This leads to competition among companies, which is known to eventually result in price reductions and improved service quality.

In Europe, where distribution regulations have traditionally been strong, there is a prevailing atmosphere that prioritizes "efficiency." The tendency is strong to implement regulations as long as they do not hinder industrial efficiency.

In particular, France has been easing the scope of store opening regulations and Sunday business restrictions since the 2008 financial crisis. In 1973, France enacted the "Loi Royer" law, which mainly regulated the opening of large stores to protect small businesses, requiring approval from the local government's "Regional Urban Planning Committee" when establishing or expanding stores larger than 1500㎡. In 1996, the "Loi Raffarin" law, which was stricter than the previous regulation, was enacted, reducing the size of new stores requiring mandatory approval from local governments to 300㎡ or more. However, under these strengthened regulations, the efficiency of the French distribution industry gradually declined. In response, President Nicolas Sarkozy implemented the "Economic Modernization Law" in January 2009, easing the criteria for permitting large new stores in the French distribution industry from the previous 300㎡ to 1000㎡ or more. In January 2017, the "Macron Law" was fully enforced, easing Sunday business restrictions for all retail stores.

In Italy, until 1998, all retail distribution companies were required to obtain mandatory approval from local governments when opening new stores. However, as side effects of declining efficiency in the distribution industry appeared, the government enacted the "Bersani Law" in 1998, requiring approval only for medium and large stores with a business area of 1500㎡ or more under local government commercial urban planning.

In the United Kingdom, there are