Slovakia urges European commission to toughen measures against unfair supermarket practices

Slovakia is calling on the European Commission to intensify its crackdown on unfair supermarket practices, arguing that current regulations fail to protect local farmers and food producers from predatory pricing and abusive supply chain tactics used by large retailers. The Slovak government has formally requested a review and reinforcement of the EU’s Unfair Trading Practices Directive (UTP), citing concerns over the dominance of multinational supermarket chains in the country’s retail sector.

Unfair Practices Hurting Slovak Farmers and Suppliers

Slovak officials argue that big retail chains are using their market power to impose unfavorable conditions on local producers, such as delayed payments, excessive discount demands, and forced contributions to promotions. The government is pushing for stricter EU-wide enforcement to ensure that suppliers, particularly small and medium-sized agribusinesses, are not exploited in negotiations with dominant supermarket players.

Minister of Agriculture Richard Takáč has warned that unfair trading practices are undermining Slovakia’s food security and local production capacity. “Slovak farmers and food producers are struggling to compete against large supermarket chains that dictate prices, impose unfair contract terms, and prioritize cheaper foreign imports,” Takáč stated. “Without stronger regulation at the EU level, we risk further dependence on external food sources and the decline of domestic agriculture.”

Slovakia Wants Tougher EU Rules

Slovakia’s proposal to the European Commission calls for more stringent penalties for violations, stricter enforcement mechanisms, and greater transparency in pricing and contract negotiations between supermarkets and suppliers. The government is also advocating for a shorter payment deadline for perishable goods, ensuring that farmers and food producers receive faster and fairer compensation for their products.

In addition, Slovakia is urging more oversight on supermarket pricing strategies, arguing that unfair price squeezing is driving local farmers out of business. The government wants the Commission to consider limits on excessive discounting strategies that hurt domestic suppliers while benefiting large multinational retailers.

Supermarket Chains Push Back

Major supermarket operators in Slovakia have rejected the government’s claims, arguing that their pricing and procurement policies align with EU regulations. They warn that stricter controls on retail pricing and supplier agreements could lead to higher consumer prices and reduced product diversity in stores.

“We operate within EU competition rules and provide fair opportunities for suppliers across Europe,” a spokesperson for a major retail chain stated. “Further restrictions could harm competition and ultimately increase prices for Slovak consumers.”

EU’s Response and Next Steps

The European Commission has acknowledged Slovakia’s concerns and has committed to assessing the effectiveness of current UTP enforcement. The Commission’s Directorate-General for Agriculture and Rural Development (DG AGRI) is currently reviewing compliance reports from member states, with a decision expected later this year on whether additional measures will be introduced.

Slovakia’s push for tighter supermarket regulations comes amid broader EU discussions on fair competition in food supply chains, as several member states have raised similar concerns about the power imbalance between large retailers and small suppliers.

If Slovakia’s efforts gain traction, the EU could introduce stricter controls on supermarket practices, increase penalties for violations, and enforce stronger protections for local producers, potentially reshaping the retail landscape across Europe.