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This Website Exposes the Truth About Soaring Food Prices
A developer in Austria created a comparison website that helped open up the opaque world of food costs as regulators investigate the food industry.
It didn't take long for Mario Zechner to prove the government wrong. In May, the independent software developer was listening to a radio interview with Austria’s labor minister, Martin Kocher, who said the government would build a new database that will help people find the cheapest milk, eggs, and other supermarket products to help fight soaring food prices. However, the planned system would take months to build and cover only a handful of food types. Zechner decided to take action.
Two hours after hearing the interview, Zechner had built the first prototype of a comparison system, pulling the cost of 22,000 items from the websites of Austria’s biggest two supermarket chains. “I decided to just sit down in the afternoon and see how hard it really can be,” Zechner says. The result was Heisse Preise (which translates as “Hot Prices”), with Zechner open-sourcing the project on GitHub. “From then on, it kind of escalated,” he says.
Months later, Heisse Preise has grown enormously, demonstrating the power of citizen-developed tools and what can be achieved when data is opened up to everyone. The comparison site now lists prices from 10 Austrian supermarket chains, plus four in neighboring Germany and Slovenia. Heisse Preise includes more than 177,000 items. Thanks to data provided by an anonymous contributor and local press, item pricing history goes back to 2017. Zechner’s creation of the tool came as Europe’s food retailers and governments have clashed over rising prices and the cost of living.
Perhaps most significantly, Zechner’s tool has shone a light on the opaque world of price changes by supermarkets, allowing price increases and decreases to be tracked. The transparency, Zechner and others say, shows there can be little difference in prices at some major supermarkets, and within days of an item changing price, competitors can mirror the change.
Data gathered by Heisse Preise and other newly-emerged DIY comparison sites has fed into the investigations of Bundeswettbewerbsbehörde, the Austrian Federal Competition Authority, which has been probing the food industry since October 2022. The authority, which is due to present its full findings later this month, has already suggested the government should introduce new laws to make shops publish their price data. The authority also says it “can be assumed” that supermarkets themselves crawl the websites of competitors and use that information to set their own prices.
“This data is enormously useful for anyone interested in serious competition policies,” says Leonhard Dobusch, the academic director at the Momentum Institute, an Austrian progressive think tank. “It really allows a peek into pricing strategies [and] price coordination tactics.”
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Conducting what he calls “layperson” analysis, he looked at chains’ own-brand, low-cost goods. “If one store changes the price, up or down, the other store will follow within a week or less,” he says. Prices for some goods in Germany were significantly lower than in Austria. Zechner sent data to the competition authority.
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“With the rise of grocery retail digitalization, supermarkets are becoming tech companies,” says Catalina Goanta, an associate professor of private law and technology at Utrecht University. Increasingly, shops are collecting customer behavioral data, personalizing offers, implementing dynamic pricing, selling data to advertising networks, and automating certain services. This can all lead to less understanding about the things we buy. Goanta highlights how the website Inside Airbnb uses its data to scrutinize how the rental firm has disrupted cities, and says in 2020, Romanian officials launched a price monitor that included foods.
“I don’t think this has become a standard process for Romanian consumers: ‘Let’s go to this website and check it before we buy food items,’” Goanta says. “Of course, this website can also send an important signal to supermarkets. We are watching you, and our inspectors are not just doing mystery shopping, but we also have access to your APIs.”
Spokespeople for the retailers Billa and Hofer declined WIRED’s request to comment. Nicole Berkmann, a spokesperson for Spar, says the grocery store has supported the Austrian competition regulator with “detailed information” about its prices. However, Berkmann says that “price comparison is a tricky thing” and claims that there are mistakes in “nearly every single price comparison” because there are “thousands of products with different shapes, packages, fillings, qualities, mixtures, and so on.”
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Wolfgang Schneider, the director of economy press and public affairs at the Austrian Federal Ministry of Labour and Economy, says the government has assessed multiple options around price transparency and has decided not to create a “state comparison tool” after all, due to the emergence of the homegrown efforts. “But it seems to be helpful to provide a general legal framework for the operation of the private tools,” Schneider says. The new “framework” would require supermarkets above a certain size to “make a selection of basic food products’ sales prices available,” Schneider adds, and that “further details will be regulated, as the tool should not merely allow a price comparison, but also give information on quality … to ensure comparability of prices.”
It is unlikely that such a framework would go as far as the number of products already listed by the DIY comparison websites. Zechner, who, along with other comparison site creators, has met with politicians, is rewriting the website’s code but says he doesn’t have any specific plans for it. He will help others who want to use his open source code to build their own comparison systems for other countries, he says.
In recent days, as an indication of how useful the data is to broader society, the Austrian National Library has told Zechner it plans to archive Heisse Preise and its data. “It allows startups to potentially exploit the data commercially,” Zechner says of the website. “It allows scientific institutions to perform macro- and microeconomic studies that hadn’t been possible before, because the data was simply not available. And it would increase competition between grocery stores, as there’s more transparency in terms of price change strategies.”
Matt Burgess
October 3, 2023
Wired