The Court of Justice of the European Union Condemned the Food Price Freeze: it violates free competition

By: Trademagazin Date: 2024. 09. 12. 14:29

The Court of Justice of the European Union issued a judgment in which it classified the food price freeze introduced by the Hungarian government as contrary to EU law. According to the ruling, the government decree, which obliged traders to sell certain agricultural products at a predetermined price and quantity, violates free competition.

The decision was made after Spar Magyarország challenged the penalty imposed on it in May 2023 in a Hungarian court due to a lack of stock in one of its rural stores. The case began at the Szeged Court of Justice, then went before the Court of Justice of the European Union, which ultimately found that the official prices and quantity regulations disproportionately limit traders’ access to the free market and cause excessive disturbances in the supply chain – hvg.hu.

The Court ruled that although Hungary introduced the price cap in order to fight inflation and provide affordable food to disadvantaged consumers, the decree was not proportionate to the achievement of the set goals.

The position of Spar Hungary

“We are pleased with the outcome of the proceedings initiated by the Court of Justice of the European Union by the Szeged Tribunal, which stated that the provision requiring the sale of products subject to official pricing at a specified price and in a predetermined quantity is incompatible with European Union law. SPAR Hungary’s goal at all times is for customers to find the products they need in the right amount on its shelves. This was no different during the period of official pricing: customers were always able to get hold of price-stop products. We trust that the Hungarian courts will close our hundreds of ongoing proceedings in accordance with the legal interpretation of the European Court of Justice.”