On Monday 23 February in Brussels, European agriculture ministers voted by a majority in favour of a revision of the 2019 Unfair Commercial Practices Directive, even though the scope of this revision continues to be debated.
On the ban on sales below production costs, a block of Member States – Italy, Spain, France, Belgium, Romania, Slovakia, Hungary, Croatia, Greece and Lithuania – were strongly interventionist and therefore in favour of such a measure. The aim would be to protect farm income and tackle the concentration of purchasing power.
Conversely, the ministers of several countries – Denmark, Sweden, the Netherlands, Ireland, Estonia and Finland – were opposed to banning below cost selling for fear of market distortions and in order to preserve market orientation and competitiveness.
For Spain’s Luis Planas, whatever changes are proposed to the Directive “must not run counter to those States that have decided to go further in pursuing the objectives of the Directive and to protect the weakest players, in particular by ensuring that their production costs are taken into account”.
Among the new unfair commercial practices mentioned, Spain cited the failure to formalise a contract when it is compulsory to do so, misleading advertising on price structures, selling below production costs and the self-financing of distributor brands to the detriment of manufacturer brands.
France regretted that suppliers with a turnover in excess of €350 million were excluded from the scope of the Directive. Despite their size, these suppliers can, according to the French delegation, fall victim to certain abusive practices on the part of European purchasing groups. Paris therefore suggests introducing a minimum turnover threshold applicable to buyers.
Other French proposals: - prohibition of clauses automatically aligning prices with those of competitors; - prohibition of the purchase of agricultural products at unfairly low prices that do not take account of production cost indices and their evolution; - banning of clauses that subject a commercial partner to a significant imbalance in the contractual relationship, as well as practices aimed at bypassing producer organisations. Finally, France advocated for the need to allow Member States that so wish to go “beyond the core requirements” set out in the Directive.
The Commissioner for Agriculture, Christophe Hansen, pointed out that the rules added by certain Member States during national transposition complicate the uniformity of the single market. The rules are not the same everywhere, which poses a problem. According to Mr Hansen, the assessment also shows that certain new practices (increased pressure on farm incomes and selling below production costs) need to be better taken into account.
The European Commission will present a proposal for a revision in late 2026, aimed at “correcting weaknesses and loopholes, preventing circumvention of the rules and improving harmonisation between Member States”, concluded the Commissioner.
Any revision must “take account of the point of view and situation of farmers, while preserving the proper functioning of the single market”, summarised Maria Panayiotou, the President-in-Office of the Council. She stressed the need to clarify the scope of the Directive in order to ensure a level playing field between farmers and to give priority to protecting those who need it most. (Original version in French by Lionel Changeur)