New EU Regulation: The Path Against Unfair Trading Practices Leads Through Coordination of Supervisory Authorities

In December 2024, the European Commission specified measures aimed at empowering farmers and protecting smaller suppliers from the unfair trading practices (UTPs) of "big players" within the agri-food chain. The newly proposed Regulation on cross-border enforcement against unfair trading practices introduces targeted changes and amendments to the existing legal framework.[1]

Coordination and Data Sharing

The Regulation directly impacts supervisory authorities. In the Czech Republic, this primarily concerns the Office for the Protection of Competition (ÚOHS). The Office is expected to cooperate more effectively with other supervisory authorities across Member States through a mutual assistance mechanism. This will lead to a more intensive cross-border flow of information, including personal data, which must be protected in accordance with GDPR rules. By sharing information, supervisory authorities will be able to take coordinated action during joint investigations in cross-border cases.

Addressing Existing Deficiencies

Currently, the fight against unfair trading practices is hampered by the inefficiency of cross-border enforcement of sanctions. Obstacles include not only the administrative burden but also differing procedural rules between states. The new Regulation seeks to eliminate these shortcomings. In addition to strengthening the coordination of supervisory authorities, its objectives are to:

• Introduce mandatory written contracts between farmers and buyers that can respond flexibly to market developments and cost fluctuations;

• Establish mandatory mediation mechanisms between farmers and buyers;

• Strengthen the bargaining power and financial support of producer organizations;

• Enable EU crisis support for producer group initiatives; and

• Support joint projects in the fields of sustainability and social development.

Conclusion

The new Regulation represents a fundamental step toward modernizing the agri-food chain. The reform targets the previously dysfunctional cross-border enforcement of rules. Key to its success is the cooperation among European supervisory authorities and the possibility of joint proceedings. The intended result is a fairer and more functional cross-border market that provides better protection for farmers and other smaller entities against large corporations.

[1] Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007; and Directive (EU) 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain.