«Don’t let down the hopes that have been raised—you want to, you can, and you must take action.»
On Wednesday, March 5, 2025, the Senate passed on first reading a bill introduced by Victorin Lurel and several of his colleagues, aimed at combating the high cost of living by strengthening competition law and economic regulation in the overseas territories. This bill, which follows up on the 2012 Overseas Economic Regulation Act (LREOM), seeks to implement concrete measures to restore a fairer economic balance in these territories.
But will it be enough to meet the expectations of citizens in the overseas territories?
A look back at a structural problem, legislative progress, and the challenges of this new reform.
A recurring, multifactorial problem
For decades, the high cost of living has been a real scourge for residents of France’s overseas territories. According to data from INSEE, prices there are on average 40 % higher than in mainland France, with the gap widening in recent years. Three main factors account for this persistent inflation:
- Geographical distance, which results in ocean and air freight costs that are passed on to the final price of consumer goods.
- The limited size of the market, which does not allow for economies of scale and results in high production costs.
- Port Tax, a specific tax imposed on imported goods, which increases their final price.
But beyond these factors, another structural problem weighs heavily: the lack of competition. In several strategic sectors (retail, fuel, telecommunications, etc.), a small number of companies—often family-owned—operate as virtual monopolies or oligopolies. This concentration limits competition, prevents prices from falling, and ensures comfortable profit margins for these companies.
A legislative framework that needs to be strengthened
The 2012 law sponsored by Victorin Lurel had already introduced several measures to combat the high cost of living:
- Wholesale Market Regulation,
- Prohibition of Exclusive Import and Distribution Agreements,
- Strengthening the Powers of the Competition Authority,
- Fuel Decree and Implementation of price-quality safeguards.
However, as Victorin Lurel pointed out in his speech to the Senate, «Market structures have changed far too little.». There continues to be a lack of transparency regarding price formation, as well as anti-competitive practices and resistance from established economic actors.
The New Bill: Key Measures
In light of these limitations, the new bill passed by the Senate is based on three main pillars:
- Enhancing Economic Transparency
- Requirement for companies receiving public aid to submit their financial statements and cost accounting records to government officials.
- Establishment of a new sanctions regime : The prefect may ask the commercial court to issue an order to company executives who refuse to publish their financial statements, with a penalty payment of up to 5 % of daily revenue.
- Increased Competition
- Lowering the thresholds above which mergers must be notified to the Competition Authority.
- Expansion of the powers of the Price, Margin, and Revenue Monitoring Agencies (OPMR), who can file a complaint directly with DGCCRF officials.
- Expansion of the options available to overseas departments and commercial development commissions for filing complaints with the Competition Authority.
- Measures Regarding the Prices of Essential Goods
- Originally, the bill called for extending freight subsidies to these products in order to reduce their final cost. This provision was removed to be considered under a different legislative framework.
Toward More Effective Regulation
The Senate’s passage of this bill marks an important step in the fight against the high cost of living in the overseas territories. But according to Victorin Lurel, «We need to go a little further.». In his speech, he proposed five additional amendments aimed, in particular, at cap back margins, at protect local businesses from oligopolies, and to Include the French overseas territories in the general terms and conditions of sale for e-commerce platforms.
The challenge is to ensure that this law does not remain a dead letter. « Au-delà des lois, de nombreuses mesures réglementaires peuvent déjà être prises », a insisté Mr Lurel, appelant à un renforcement des moyens de la DGCCRF, à des contrôles accrus des services de l’État, et à une réforme du décret sur les carburants.
Un texte en attente de validation par l’Assemblée nationale
Désormais, la balle est dans le camp de l’Assemblée nationale, qui devra examiner ce texte et valider ces avancées. Si cette proposition de loi venait à être adoptée définitivement, elle pourrait marquer un tournant décisif dans la lutte contre la vie chère en Outre-mer.
Les citoyens ultramarins attendent des mesures concrètes et efficaces. Cette loi sera-t-elle enfin celle qui permettra de réduire durablement les prix et de briser les monopoles ? L’avenir nous le dira.
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