The European Union has taken a decisive step toward closing the legal loopholes that allowed unfair trading practices to flourish across national borders. With the publication of Regulation (EU) 2026/697, Member States are establishing a unified framework to monitor and sanction unlawful business-to-business conduct in the agricultural and food supply chain. This new legislation addresses a significant structural weakness identified in previous directives: the principle of territoriality. In the past, national authorities often found it difficult to gather evidence or recover penalties when a buyer was based in a different country, leaving suppliers vulnerable to exploitation.
The new regulation creates a “single enforcement area” where borders no longer serve as a shield for unfair behavior. National enforcement authorities are now empowered to collect information and enforce sanctions regardless of where a buyer is established. This is supported by a mutual assistance mechanism, allowing authorities to formally request investigative measures from their counterparts in other Member States. Furthermore, if a “widespread infringement” is suspected—affecting at least three countries—authorities can launch a coordinated joint action under a single lead supervisor.
One of the most impactful changes is the shift toward proactive enforcement. To combat the “fear factor” that often prevents smaller suppliers from reporting powerful buyers for fear of retaliation, national agencies can now launch investigations on their own initiative. The scope of this oversight even extends to buyers based outside the EU, who may be forced to appoint a responsible contact person within the Union to facilitate investigations.
A centralized information exchange system managed by the European Commission will ensure that evidence and alerts regarding unfair practices are shared rapidly between states. With stricter deadlines for information requests and enhanced powers for agencies like Slovenia’s Public Agency for the Protection of Competition, the regulation promises a faster, more predictable enforcement sequence. These rules will become fully active across all Member States on September 10, 2027, ensuring that fair competition and consumer interests are protected throughout the entire European food supply chain.
