The silence was costly: Leroy Merlin receives UAH 1 million fine from the AMCU
8 May 22:04
On May 8, 2025, the Antimonopoly Committee of Ukraine (AMCU) announced the imposition of a fine on Leroy Merlin Ukraine LLC in the amount of UAH 1 million. The reason is a double violation of the requirements of the legislation on the protection of economic competition, "Komersant Ukrainian" reports, citing the AMCU’s message.
According to official information, the company failed to provide the requested information to the AMCU state authorized officer within the established timeframe – first in February and then again in August 2023. For each episode of violation, the Leroy Merlin chain of stores was fined UAH 500 thousand.
Such actions were classified under Article 50(13) of the Law of Ukraine “On Protection of Economic Competition”, which provides for liability for failure to provide information at the request of the committee. The amount of the fine is maximum within the limits permitted by law – up to 1% of the annual revenue of the business entity, but not less than UAH 85 thousand.
The AMCU emphasized that timely provision of complete and accurate information is an obligation for all market participants, and ignoring such requests creates risks for effective competition regulation and investigation of potential abuses.
The AMCU is particularly concerned about the fact that a company belonging to a large international group systematically ignores legal requirements. Such behavior, in the regulator’s opinion, may indicate that global business underestimates Ukrainian antitrust legislation.
In the context of war and economic instability, the issue of transparency and fair competition is even more important. Therefore, the Committee considers it fundamental to hold even well-known international brands accountable if they violate the rules. It is expected that this decision will send a signal to other market participants that they need to fully comply with the requirements of the controlling authorities.
What you need to know about Leroy Merlin
Leroy Merlin is an international chain of stores specializing in products for repair, construction, home and garden improvement. The company is known as one of the largest players in the DIY (do-it-yourself) market in Europe.
Basic information:
- Founded: 1923 in France, by brothers Adolphe and Ros-Merlin (originally as a warehouse of discounted goods).
- Headquarters: Lecen, France.
- Belongs to: the French retail holding Groupe Adeo, which also owns other brands: Bricoman, Weldom, Zodio, etc.
- Number of stores: more than 500 in more than 15 countries, including France, Spain, Italy, Poland, Brazil, China, Ukraine and formerly Russia.
Global presence and business model
As of the end of 2024, the chain has more than 500 stores in more than 15 countries. The largest representation is in France, Poland, Spain, Brazil, Italy and Portugal. Leroy Merlin is known for its approach to adapting its assortment to local markets, as well as for the widespread use of digital technologies in logistics, sales, and marketing. The company is actively developing online sales and delivery services.
Leroy Merlin belongs to the ADEO Group, one of the world’s largest retail holdings and one of the five global leaders in the DIY industry. ADEO owns 16 brands and employs more than 100,000 people in 20 countries.
Operations in Ukraine
Leroy Merlin entered the Ukrainian market in 2008. As of 2024, there are several stores in Kyiv. In Ukraine, the company is registered as Leroy Merlin Ukraine LLC. It positions itself as an affordable store for private customers, builders and professional craftsmen.
Criticism for its stance on Russia
Since the beginning of Russia’s full-scale invasion of Ukraine in February 2022, the company has been heavily criticized for its decision to continue operating in Russia. Unlike many international companies, Leroy Merlin did not immediately announce its withdrawal from the Russian market, explaining it as a “concern for employees” and “consumer needs.”
The media reported that Leroy Merlin was actively expanding its operations in Russia, even after Russian troops attacked civilian targets in Ukraine. This caused boycotts and public campaigns in Poland, France, Lithuania, and Ukraine. The Ukrainian office of the company publicly distanced itself from the actions of the parent structure, but there was no complete break with the parent company.
In 2023, there were statements about ADEO Group’s intentions to transfer control of the business in Russia to local management, but, according to human rights organizations, the actual management remained linked to the French parent company.
Reputation and challenges
In many countries, Leroy Merlin is still associated with quality, affordable products and a large network, but the reputational damage caused by the Russian case has significantly affected the brand’s image. The company has faced a serious ethical challenge: balancing commercial interests, international reputation and public expectations in a time of war.
