Regulation (EU) 2026/697 of the European Parliament and of the Council of 11 March 2026 on cooperation among enforcement authorities responsible for the enforcement of Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Acting in accordance with the ordinary legislative procedure (2),

Whereas:

(1) Within the agricultural and food supply chain, significant imbalances in bargaining power between suppliers and buyers of agricultural and food products are likely to lead to unfair trading practices. Directive (EU) 2019/633 of the European Parliament and of the Council (3) introduced a minimum Union standard of protection against unfair trading practices to reduce the occurrence of such practices, which have a negative impact on the living standards of the agricultural community.

(2) The report from the Commission entitled ‘Implementing the prohibition of unfair trading practices to strengthen the position of farmers and operators in the agricultural and food supply chain – State of play’ of 23 April 2024 highlighted the persistence of imbalances in the agricultural and food supply chain, which increases the need for new measures to step up protection for suppliers and ensure sufficient bargaining power to all operators.

(3) Directive (EU) 2019/633 requires Member States to designate enforcement authorities to ensure the effective enforcement of the prohibitions laid down in that Directive. That Directive also requires the Commission and those enforcement authorities to cooperate closely to ensure a common approach with respect to the application of the rules set out in that Directive. In particular, the enforcement authorities are to aim to prevent or stop unfair trading practices with a cross-border dimension that occur on their respective territories. They are to do so by working together, including by sharing information and assisting in investigations that have a cross-border dimension. While the scope and the possibilities for cooperation under Directive (EU) 2019/633 remain fully available to the enforcement authorities of the Member States, it is appropriate to address certain difficulties related to the cooperation mechanism, and to increase its effectiveness.

(4) Due to the principle of territoriality, enforcement authorities could face difficulties gathering information, finding an infringement and imposing and enforcing fines and other equally effective penalties where a buyer is established in another Member State. This is the case, for example where operators in the agricultural and food supply chain or their alliances have a cross-border purchasing strategy. Such difficulties affect the system of enforcement established by Directive (EU) 2019/633, which depends on cooperation between enforcement authorities, and could lead to an uneven enforcement of the prohibition of unfair trading practices, undermining the protection for suppliers of agricultural and food products intended by that Directive. It is therefore appropriate to establish certain uniform rules strengthening cooperation between enforcement authorities in cross-border cases. Strengthening that cooperation would lead to more effective protection against unfair trading practices with a cross-border dimension and contribute to strengthening farmers’ position in that supply chain, thereby ensuring a fair standard of living for the agricultural community.

(5) Given that Directive (EU) 2019/633 allows Member States to maintain or introduce stricter national rules against unfair trading practices, it should be clarified that this Regulation does not cover those rules. However, the Member States should be able to decide that their enforcement authorities make use of the possibilities established under the voluntary cooperation mechanism established by this Regulation in relation to such rules. That possibility could be especially important in cases where stricter national rules are categorised in some Member States as overriding mandatory provisions that aim to guarantee the stable and sustainable supply of food products to consumers. In such cases, the enforcement authorities should have the right to refuse to comply with such a request pertaining to voluntary cooperation.

(6) To enable them to fulfil their obligations under this Regulation effectively, enforcement authorities should be provided with the necessary resources and expertise.

(7) Enforcement authorities should have the power to provide one another with and use in evidence, in accordance with their national law, any matter of fact or of law, including confidential information. Information provided should only be used in evidence for the purpose of applying this Regulation to enforce the rules established by Directive (EU) 2019/633 and in respect of the subject-matter for which it was collected by the requested enforcement authority. The confidentiality of the information provided should be guaranteed with due regard to the legitimate interests of a natural or legal person concerned. Requests by complainants for protection of information on the basis of Article 5(3) of Directive (EU) 2019/633 should be taken into account and protection should also be ensured in cross-border enforcement.

(8) With the aim of helping to stop unfair trading practices that have a cross-border dimension, enforcement authorities should be empowered in their own territory to take investigative measures on behalf of other enforcement authorities. Such investigative measures should be taken by the requested enforcement authority in accordance with the powers conferred on it under Article 6(1), first subparagraph, points (a), (b) and (c), of Directive (EU) 2019/633 and in accordance with its national law.

(9) Cooperation between the enforcement authorities, concerning the enforcement of final decisions imposing fines or other equally effective penalties and interim measures adopted in accordance with Article 6(1), first subparagraph, point (e), of Directive (EU) 2019/633, is very important in order to achieve an effective protection against unfair trading practices with a cross-border dimension. For that purpose it is necessary for the requested enforcement authority to be given the power to enforce a final decision adopted by the applicant enforcement authority in the event that the collection of the fines or the implementation of the equally effective penalty or interim measure by the applicant enforcement authority is unsuccessful. In cases where the collection of fines or the implementation of equally effective penalties or interim measures in the Member State of the requested enforcement authority is carried out by another competent national authority, the requested enforcement authority should have the power to initiate the collection of the fine or the implementation of the equally effective penalty or interim measure before that other competent national authority.

(10) Enforcement authorities should be empowered in their own territory and in accordance with their national law to enforce, or to initiate proceedings for the enforcement of, final decisions imposing fines or other equally effective penalties or interim measures on behalf of other enforcement authorities, provided that those other enforcement authorities have ascertained that the fines or other equally effective penalties or interim measures cannot be enforced in the Member States of those other enforcement authorities.

(11) In order to increase the efficiency and effectiveness of this Regulation, to secure smooth cooperation between enforcement authorities and to avoid excessive costs for the requested enforcement authorities, rules on covering the costs of measures taken pursuant to this Regulation should be laid down.

(12) Enforcement authorities should inform one another of any unfair trading practice with a cross-border dimension that has occurred or is occurring in their territory.

(13) Enforcement authorities should cooperate with each other by issuing requests for mutual assistance. Such requests should specify what information or measure is considered necessary in each case to conduct investigations of unfair trading practices. To enable the requested enforcement authority to fulfil the request, it should include all necessary information about the alleged unfair trading practice.

(14) Enforcement authorities should not be entitled to refuse to comply with a request for information, or to refuse to participate in enforcement measures, unless it is likely that other enforcement actions, administrative decisions or judicial proceedings taken at national level falling outside the mutual assistance mechanism under this Regulation would ensure the cessation of the relevant unfair trading practice with a cross-border dimension. Refusals should also be possible in cases where requests fall outside the scope of this Regulation or are in contradiction with the national law of the requested enforcement authority. Enforcement authorities should give reasons for such refusals.

(15) A lack of procedural arrangements regarding the language regime could present obstacles to the smooth cooperation between enforcement authorities. For that reason, the enforcement authorities should agree on the language to be used in all notifications, requests and communications between them. Where they are unable to agree on the language to be used, the default rules on language use laid down in this Regulation should apply.

(16) Where a widespread unfair trading practice with a cross-border dimension, involving buyers and suppliers from at least three Member States, might be occurring, the enforcement authorities concerned by that practice should be able to issue alerts through a dedicated system, engage in coordinated actions, and designate a coordinator to coordinate the cooperation among the relevant enforcement authorities in whose territories the practice is alleged to be occurring. To establish which enforcement authorities are concerned by a widespread unfair trading practice with a cross-border dimension, all relevant aspects should be considered, in particular the place where the buyer is established and the location of the suppliers that might be affected. The detection of widespread unfair trading practices with a cross-border dimension should be supported by the exchange of information between enforcement authorities where there is a reasonable suspicion of such practices. The coordinator should exercise its competence within a framework of close cooperation with the other enforcement authorities concerned. All enforcement authorities concerned by a widespread unfair trading practice with a cross-border dimension should actively engage in the investigation at an early stage, issue alerts to the Commission and to the other enforcement authorities concerned, and share the information about such practices that is available to them.

(17) Procedures for the coordination of investigation and enforcement measures relating to widespread unfair trading practices with a cross-border dimension should be laid down. Coordinated actions against such practices should ensure that enforcement authorities are able to choose the most appropriate and efficient tools to stop those practices.

(18) It is necessary to list the cases where an enforcement authority concerned by an unfair trading practice with a cross-border dimension should be able to decide to refuse to participate in a coordinated action. In particular, lack of available resources on the part of such enforcement authority should not justify refusing to participate in a coordinated action.

(19) With a view to ensuring that the enforcement authorities concerned by the coordinated action have all the necessary communication, cooperation and coordination tools, this Regulation should lay down rules on language arrangements.

(20) Since Directive (EU) 2019/633 also protects suppliers in the Union against unfair trading practices by buyers established outside the Union, and protects suppliers established outside the Union when they sell agricultural and food products into the Union, this Regulation should also provide rules for the cooperation of enforcement authorities with each other as regards unfair trading practices involving buyers and suppliers established outside the Union and which are prohibited by Directive (EU) 2019/633.

(21) Directive (EU) 2019/633 also protects suppliers in the Union against unfair trading practices by buyers established outside the Union. It is therefore appropriate to lay down rules that enable enforcement authorities to conduct investigations more effectively in such cases. To that end, an enforcement authority should be able to request that a buyer designate a point of contact within the Union to be the primary point of contact for the enforcement authority and to facilitate the investigation. Enforcement authorities should also inform each other and the Commission in cases where a buyer does not comply with such a request.

(22) In order to ensure uniform conditions for the implementation of the measures laid down in this Regulation, implementing powers should be conferred on the Commission to develop standard forms for requests for mutual assistance. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (4).

(23) In the interests of an effective implementation of the rules intended to strengthen the position of operators in the agricultural and food supply chain that are exposed to unfair trading practices, the report on the application of the rules under this Regulation should inform the process of reviewing Directive (EU) 2019/633. It is important that the Commission have an overview of the application of this Regulation in the Member States. In addition, the Commission should be able to assess the effectiveness of this Regulation. To that end, the enforcement authorities of the Member States should include in their annual reports to the Commission activities falling within the scope of this Regulation.

(24) To facilitate effective enforcement, the Commission should provide and manage a platform that allows the swift exchange of information or requests among the enforcement authorities and, where appropriate, with the Commission.

(25) In order to take account of future technical needs, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amendments as regards the tool to be used for the management of the notifications and communications among the enforcement authorities. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (5). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(26) This Regulation respects fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union and present in the constitutional traditions of the Member States. Accordingly, this Regulation should be interpreted and applied in accordance with those rights and principles.

(27) Criminal investigations and judicial proceedings in Member States should not be affected by the application of this Regulation. Consequently, Council Decision 2008/976/JHA (6), Council Framework Decision 2005/214/JHA (7) and Directive 2014/41/EU of the European Parliament and of the Council (8) should have precedence over this Regulation to the extent that the unfair trading practice concerned falls under the scope of those legal acts.

(28) Since the objective of this Regulation, namely to strengthen the cooperation between the enforcement authorities responsible for the enforcement of the prohibition of unfair trading practices under Directive (EU) 2019/633 in cross-border cases, cannot be sufficiently achieved by the Member States because they cannot ensure cooperation and coordination by acting alone, but can rather, by reason of its territorial and personal scope, be better achieved at the Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(29) In order to give the enforcement authorities the time needed to be able to implement the rules laid down in this Regulation, its application should be deferred by 18 months after its entry into force,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

INTRODUCTORY PROVISIONS

Article 1

Subject-matter

With a view to combatting practices that grossly deviate from good commercial conduct, that are contrary to good faith and fair dealing and that are unilaterally imposed by one trading partner on another, this Regulation lays down certain rules under which enforcement authorities designated by their Member States as responsible for the enforcement of the prohibition of unfair trading practices in business-to-business relationships in the agricultural and food supply chain under Directive (EU) 2019/633 cooperate and coordinate actions with each other to ensure the effectiveness of that Directive.

Article 2

Scope

Chapter IV of this Regulation also applies in relation to short notice periods set for shorter than 30 days for specific sectors on the basis of Article 3(1), point (b), of Directive (EU) 2019/633 or national rules maintained or adopted on the basis of Article 9(1) of that Directive where the Member State so decides in accordance with Articles 15 and 16 of this Regulation.

Chapter VI of this Regulation applies in relation to unfair trading practices involving suppliers or buyers established outside the Union.