In 2024, the Competition Authority received four complaints (including anonymous notices) regarding possible unfair trading practices in the agricultural and food supply chain. The complaints primarily referred to commercial practices such as excessively long payment terms, charges not related to sales, or other problematic practices or contract terms.
No applications for the commencement of supervisory proceedings were submitted under § 10 of the Act on Combating Unfair Trading Practices in the Agricultural and Food Supply Chain1 (hereinafter the ‘Unfair Trading Practices Act’). However, the lack of applications does not mean that unfair trading practices do not exist in the market. Rather, it indicates a lack of awareness of unfair trading practices or the role of the Competition Authority in combating them. The low number of complaints could also be attributed to the fact that sellers affected by unfair trading practices are economically dependent on larger buyers. They fear that filing a complaint may lead to negative consequences, such as the termination of business relationships or other repressive measures. Therefore, one of the Authority’s priorities for 2025 is to raise awareness among market participants about unfair trading practices and the role of the Competition Authority, while also strengthening supervision. The Authority will continue to determine unfair trading practices on its own initiative and respond to them in an appropriate manner.
Last year, the Competition Authority initiated supervisory proceedings on its own initiative to verify compliance with the Unfair Trading Practices Act by five major food supplement wholesalers who purchase food supplements for resale to pharmacies. The reason for commencing supervisory proceedings was information received by the Authority, which, among other things, referred to problems in calculating payment terms. A broader inspection project was launched to verify compliance with the prohibition of unfair trading practices, and supervisory proceedings will continue in 2025.
In addition to the above, the Competition Authority also received several requests for clarification in 2024 regarding unfair trading practices. People mostly asked about the scope of application the Unfair Trading Practices Act, in particular, which products qualify as agricultural and food products within the meaning of subsection 1 of § 3 of the Unfair Trading Practices Act.