Global fast food chain McDonald’s (NYSE:MCD) may be hit with fresh regulatory allegations in Europe it emerged on Tuesday.
Three Italian consumer groups filed a complaint with the European Union (EU) that the fast-food chain charges its franchisees rents that exceed market rates.
In some cases, this can be as high as 10 times more than market value, according to reports.
It also imposes other illegal terms on its franchisees such as limiting their options to switch to other brands.
EU legal experts said the complaint might struggle to demonstrate that McDonald’s has a dominant position in Europe’s fast-food market.
The European Commission, the bloc’s top antitrust authority, said it was looking into the complaint.
Companies found guilty of violating EU antitrust law face fines of up to 10% of their global revenue.
It follows EU regulators opening an investigation into McDonald’s tax affairs in Luxembourg last month.
Unions claimed the company avoided around €1bn in taxes by moving its royalties to Luxembourg.