Austrian Competition Authority Steps Up Action Against Unfair Trading Practices in Food Sector

VIENNA, March 16 — The Austrian Federal Competition Authority (BWB) stepped up its enforcement against unfair trading practices in the food supply chain in 2025, pursuing several investigations and contributing to evolving EU rules, according to its newly published annual report.

The authority said unfair practices remain widespread in the sector. A sector inquiry into the food industry conducted in 2023 found that more than one-third of suppliers reported facing threats of delisting or replacement by competitors if they did not accept retailers’ pricing or contractual demands.

“Unfair trading practices weaken trust across the entire supply chain and particularly affect those at the start of the value chain,” BWB Director General Natalie Harsdorf said. “As a competition authority, we are committed to clear rules and their effective enforcement.”

Three cases brought under Austria’s Fair Competition Conditions Act (FWBG) are currently pending before the Cartel Court. The proceedings relate to alleged demands for payments to finance digital sales channels, delayed payments to fruit growers, and requests for financial contributions linked to an internal corporate transformation process.

Under the FWBG, the BWB can investigate suspected violations and request fines of up to €500,000.

The authority is also examining complaints in the dairy sector concerning possible unilateral changes to supply agreements with dairy farmers during the introduction of new animal welfare standards. The BWB has sought guidance from the European Commission on whether EU unfair trading practices rules apply to cooperatively organised dairies.

Another investigation concerned possible additional costs linked to supplying a retailer’s central warehouse. Interviews with suppliers found no evidence of pressure or retaliation, and the case was closed in February 2026 after the authority determined there had been no violation of the law.

The BWB cooperates closely with Austria’s Fairness Office, which serves as a contact point for suppliers affected by unfair trading practices. The two bodies regularly exchange information on developments in the sector.

Since 2022, the BWB has been responsible for enforcing the FWBG, which protects suppliers of agricultural and food products from practices such as unilateral contract changes, unjustified payment demands and charges for quality losses not caused by the supplier.

The authority said its work in 2025 was also shaped by legal interpretation questions and developments in EU law. Several cases have been affected by preliminary ruling procedures before the Court of Justice of the European Union concerning payments unrelated to the sale of agricultural and food products and delayed payments to fruit growers.

At EU level, the European Commission published an evaluation of the Unfair Trading Practices Directive in December 2025, identifying progress in tackling such practices but also highlighting challenges, including suppliers’ reluctance to file complaints and differences in enforcement across member states.

Meanwhile, the European Parliament in February 2026 approved a proposal aimed at strengthening cooperation between national authorities in cross-border cases. The BWB said it had contributed to the consultations and expert discussions related to these initiatives.

Source: https://www.bwb.gv.at/news/detail/bwb-setzte-2025-gegen-unfaire-handelspraktiken-im-lebensmittelsektor-gezielte-massnahmen-und-veroeffentlicht-dazu-jahresbericht

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