The European Parliament has adopted new regulations aimed at strengthening the enforcement of rules against unfair trading practices (UTP) in the agri-food supply chain. The changes are intended to increase protection for farmers and smaller suppliers, particularly in cross-border commercial relationships. The new provisions expand the powers of national authorities and introduce enhanced mechanisms for cooperation between EU member states.
“Unfair trading practices occur in the agri-food supply chain because market participants do not have equal bargaining power. Farmers and producers are always in a weaker position compared to the buyers, who are often very large companies. That is why it is necessary to support the weaker side in this unequal market game,” said Waldemar Buda, Member of the European Parliament from Poland’s Law and Justice party, in an interview with the Newseria news agency.
Stronger Cross-Border Enforcement
The new regulation adopted by the European Parliament complements existing EU legislation on unfair trading practices and focuses primarily on enforcement in cross-border cases.
Under the updated framework, national enforcement authorities will be required to cooperate more closely, enabling them to take action even without a formal complaint from an affected supplier. The regulation also introduces mechanisms for information exchange between member states, allowing authorities to coordinate their responses more effectively.
Another important feature of the new rules is the use of the Internal Market Information System (IMI). This EU-wide digital platform enables national authorities to share information about detected unfair trading practices or potential risks related to them. The mechanism is intended to ensure rapid and coordinated administrative responses across the European Union.
Addressing the Growing Number of Cross-Border Transactions
According to Waldemar Buda, the new regulations reflect the growing complexity of cross-border trade in agricultural and food products.
“Until now, support for farmers has largely been provided at the national level, and in most cases it works. However, cross-border support is also necessary, because situations where agricultural products are purchased by foreign companies are becoming increasingly common. There is growing export activity and trade within the European Union, so such regulations should have been introduced much earlier,” Buda said.
The significance of the new rules is particularly evident in cases where suppliers and buyers operate in different EU member states. In such situations, enforcing contractual rights can be complicated due to differences in legal systems, administrative procedures, and language barriers.
The new cooperation mechanisms between national authorities aim to reduce these obstacles and improve the effectiveness of enforcement across borders.
Support for Farmers in International Disputes
The regulation is also expected to provide stronger protection for farmers involved in disputes with foreign companies.
“The new rules create an opportunity to support, for example, a Polish farmer abroad if problems arise with a company based in another European country. These could involve disputes over deliveries, payment issues, or other contractual matters. In such cases, the farmer will be able to rely on the support of the relevant authority responsible for fair competition and combating unfair market practices,” Buda explained.
According to the MEP, the new framework should ensure that suppliers are no longer left alone when facing cross-border legal disputes. Farmers will have access to institutional support when pursuing claims related to payments, settlements, or other contractual obligations.
What Counts as Unfair Trading Practices
EU regulations on unfair trading practices apply to specific situations in commercial relationships between suppliers and buyers of agricultural and food products.
These practices include, among others:
- late payments for delivered products,
- unilateral changes to contract terms,
- last-minute order cancellations,
- shifting unrelated costs onto suppliers.
Such actions are considered violations of fair market conduct and may lead to investigations and financial penalties.
However, Buda emphasized that these cases remain relatively rare.
“We are mainly talking about exceptional or extraordinary situations. Statistically, such problems occur only in a small percentage of cases. These changes are intended to organize the market and ensure that companies act fairly toward farmers, especially when they know that stronger enforcement and greater liability are now possible,” he said.
Thousands of Investigations Across the EU
Data from the European Commission show that between 2021 and 2024, authorities across the EU launched more than 4,500 investigations into potential violations of unfair trading practice regulations.
Approximately one-third of completed cases confirmed irregularities, and financial penalties imposed in these cases amounted to nearly €42 million in total.
Enforcement at the National Level
At the national level, the enforcement of regulations related to abuse of contractual advantage is carried out by competition authorities.
In Poland, this responsibility lies with the Office of Competition and Consumer Protection (UOKiK).
According to UOKiK data, between July 2017 and the end of 2024, the authority initiated 22 proceedings and issued 21 decisions related to unfair contractual advantage practices. In nine cases, financial penalties were imposed totaling more than PLN 1.09 billion.
The new EU regulation is expected to strengthen these enforcement mechanisms further, particularly in cross-border supply chains, where protecting farmers and smaller suppliers has historically been more challenging.
