scholarly journals Regulating Unfair Trading Practices in the EU Agri-food Supply Chain: a Case of Counterproductive Regulation?

2020 ◽  
Vol 12 (21) ◽  
pp. 7-53
Author(s):  
Victoria Daskalova ◽  

Unfair trading practices (UTPs) imposed by parties with superior power in the context of a vertical relationship are an issue at the periphery of competition law, private law, and, sometimes, sectoral regulation. For a long time, the mainstream competition law approach has been to relegate such issues to other areas of law and regulation. In the EU, where complaints about the prevalence of such practices in the agricultural and food supply chain have been voiced for decades, the approach of the European Commission has been to pursue a strict separation between competition issues and fair-trading issues. This article questions the reasonableness of such a strict division of labour. Taking the sum of various initiatives undertaken to regulate UTPs in the agri-food supply chain as a case study, it argues that the effect of limiting competition law enforcement on this issue has been counterproductive. The article firstly explains the background of the problem and the issue of UTPs in the agri-food supply chain. Secondly, it maps the various legislative developments which have taken place at the EU Member State level. Thirdly, by referring to Grabosky’s (1995) regulatory studies typology of counterproductive regulation, the article focuses attention on some of the perverse side effects which arise when regulation of power imbalances and UTPs occurs at the national level in the context of an integrated market like the EU. In light of the analysis, it expresses doubt that these pitfalls will be fully corrected by Directive 2019/633 on UTPs in the food supply chain. The conclusion is that national legislative developments have not been able to make up for the lack of supra-national enforcement of EU competition law on this issue and have possibly even exacerbated the problem at hand. The article concludes that supranational competition law enforcement can play a key role in addressing the fundamental problems underlying business-to-business unfair trading practices. It argues that this role cannot be played by other instruments in the context of an integrated market with multi-level governance. This article shows that while competition law may not be capable of solving all the problems with UTPs, it remains indispensable in safeguarding the proper functioning of the internal market as well as the interests of consumers and taxpayers.

New Medit ◽  
2020 ◽  
Vol 19 (1) ◽  
pp. 19-34 ◽  
Author(s):  
Marinos Markou ◽  
Andreas Stylianou ◽  
Marianthi Giannakopoulou ◽  
Georgios Adamides

Unfair Trading Practices (UTPs) between businesses in the food supply chain have a significant impact on the various stakeholders involved, and on the environment. So far, no attempt has been made at the Member State level for the identification of UTPs in the food supply chain and their impact on the relevant stakeholders. This study drew on this gap and attempted to identify the UTPs that exist in the Cypriot food supply chain, assess their impact on the involved stakeholders and provide guidelines that will assist the transposition of EU relevant Directive to the national law. To achieve this goal, the study was based on a quantitative survey of a representative sample of businesses using a specific questionnaire. The results showed that particular UTPs do appear in the food supply chain with a different frequency, while the majority of businesses have been victims of UTPs in the last five years. Notably, the estimated cost of UTPs as a percentage of the business annual turnover is considered important ranging from 5.7% for retailers to 31.9% for farmers. Thus, most participants agree that UTPs in the agricultural food sector should be regulated by national legislation. We argue that the national legislation for UTPs should be a mix of policies that integrate private, administrative and judicial methods of monitoring and enforcement. Policy and decision makers should seek to reinforce the role and the bargaining power of small businesses in the food supply chain. This might be accomplished through the development of efficient producers’ organizations, short food supply chains, interbranch organizations and strategic partnerships.


2011 ◽  
Vol 17 (2-3) ◽  
pp. 373-385 ◽  
Author(s):  
Andrzej Tabeau ◽  
Martin Banse ◽  
Geert Woltjer ◽  
Hans Van Meijl

Author(s):  
Katalin J Cseres

This chapter evaluates the functioning of the decentralized public enforcement of EU competition law. The analysis focuses on the effectiveness of the decentralized enforcement, which relies on Rule of Law principles. It has been argued that Rule of Law principles are a prerequisite for effective competition law enforcement. Aside from that, assessing the effectiveness of the decentralized enforcement framework also takes account of the problems of multilevel governance which have emerged as a result of the decentralization of enforcement powers and the creation of parallel competences for the Commission and national actors which made it essential to guarantee uniform and consistent application of the EU competition rules. Centrifugal pulls from the Member States towards their national legal systems and centripetal pushes from the Commission create uniformity and consistency in this multilevel system. Analysing these bottom-up and top-down approaches allows us to analyse decentralized enforcement as a specific governance model.


2020 ◽  
Vol 5 (1) ◽  
pp. 62-72
Author(s):  
Magdalena Knapp

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.


2018 ◽  
pp. 91-101
Author(s):  
Izabela Lipińska

The aim of this article was to answer the question whether and to what extent the amendments to the legal organisation of the milk and milk products market introduced as of 1 January 2018 contribute to improving the lives of milk producers and the development of the market. This refers to certain legal solutions adopted by the EU legislator which aim to strengthen the role of agricultural producers and their organisations in the agri-food supply chain. The amendments to Regulation 1308/2013 have not changed the organisational framework of the market, but addressed basically two issues – the obligation to conclude raw milk delivery contracts and contractual negotiations in this sector. The legal solutions adopted by the legislator are very positive. Written contracts, which are mandatory in many Member States, define and guarantee the producers’ rights and clearly indicate the obligations associated with the production process. In turn, entrusting the role of a negotiator of contract terms to producers’ representatives should be seen as recognition of their significant role in shaping the market in a manner adequate to its needs.


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