Abstract
The article focuses on the scope of the 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. It discusses recent developments in regulatory approach to unfair trading practices. It analyses steps taken towards uniformity in this area of law within the EU and contemplates whether there is a need for further harmonisation. The article attempts to evaluate the scope of the UTP Directive, focusing mainly on a material scope inherently linked to the notion of “agricultural and food products” and characteristics of unfair trading practices. It also discusses whether Member States should consider widening the national regulations beyond food supply chain so that their scope would cover vertical relationships in every sector of the economy.
Highlights
The article focuses on the scope of the 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
The article attempts to evaluate the scope of the UTP Directive, focusing mainly on a material scope inherently linked to the notion of “agricultural and food products” and characteristics of unfair trading practices
The Directive on unfair trading practices in business-to-business relationships in the agricultural and food supply chain, which entered into force in May 2019 is the final solution to the problem of unfairness and inequality of bargaining power in business-to-business relationships reached by EU authorities supported by Member States and other stakeholders
Summary
The Directive on unfair trading practices in business-to-business relationships in the agricultural and food supply chain, which entered into force in May 2019 (hereinafter: the UTP Directive) is the final solution to the problem of unfairness and inequality of bargaining power in business-to-business relationships (hereinafter: B2B) reached by EU authorities supported by Member States and other stakeholders. The Committee stressed that the protection of a weaker party cannot be a sole rationale for state actions aimed at restoring the disturbed balance In this regard, the primary objective of regulations on unfair trading practices should be the protection of the economic interest of Member States (COM/2013/37 final, 2013). Most of the Member States decided to introduce detailed regulations preventing the abuse of the bargaining position by a stronger party, before any regulatory actions at the EU level This led to substantial differences in national legislation. This is best illustrated by a simple example of the Member State with one of the highest concentration
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