The Monopolies Commission has submitted a statement as part of the European Commission’s consultation process on the revision of EU rules on unfair trading practices (UTP Directive) in the food supply chain. Against the backdrop of the considerable economic pressures faced by farmers in the face of structural changes and increasing market concentration in the downstream stages, the Monopolies Commission emphasises the importance of effective supervision to prevent abuse. The UTP Directive represents an important complement to the prohibition of abuse. Owing to their clearly formulated prohibitions, these rules are easier to apply and can therefore have a direct impact on contractual relationships.

Our recommendations:

• Retain the UTP Directive alongside the prohibition of abuse under competition law.
• No intervention in price setting (e.g. a ban on purchasing below production costs).
• Restriction of the scope of application to commercial relationships with farmers and their cooperatives.
• Retain and further develop specific lists of prohibited practices rather than a general catch-all clause.
• Strengthen the enforcement of the UTP Directive to overcome the ‘fear factor’.