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The relations between large retailers and their suppliers are characterized by annual negotiations that determine the following year’s product range and prices. Although cooperation between the suppliers and retailers is necessary to boost sales, retailers use their market power to cut their suppliers’ rates. To protect suppliers, the state intervened by regulating the contracts tying them to retailers. At first, the law provided that suppliers should receive tangible compensation for any price cut they offered. However, due to recent changes in legislation, retailers have become free again to put pressure on their suppliers.