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EU Competition Policy
Sector: Agriculture, Food & Fisheries
EU competition rules apply throughout the agriculture, food and fisheries sectors, covering activities from the production of raw materials to processing, distribution and grocery retail.
The agri-food economy benefits significantly from the EU Single Market, common food legislation and the free movement of products across Member States. However, European food supply chains are highly diverse. Their length, structure and level of complexity vary according to the product, production method, market conditions and number of intermediaries involved.
How competition rules apply to food markets
For most food products, the standard EU competition rules apply in the same way as in other sectors.
These rules prohibit:
Competition enforcement may affect farmers, food processors, wholesalers, retailers, supermarket groups, producer organisations, input suppliers and digital platforms operating in the food economy.
The objective is to preserve open markets, encourage innovation and prevent practices that could reduce farmers’ commercial opportunities or increase prices for consumers.
The special position of agricultural products
Agricultural products receive specific treatment under EU law because competition policy must also take account of the objectives of the Common Agricultural Policy.
Under Article 42 of the Treaty on the Functioning of the European Union, the EU legislator may adapt the ordinary competition rules when they are applied to agricultural products.
These adaptations must consider the objectives set out in Article 39 TFEU, including:
This means that EU competition law in agriculture must balance effective competition with the economic and social objectives of the CAP.
Cooperation between agricultural producers
Farmers often operate in fragmented markets and may have significantly less bargaining power than processors, wholesalers or large retailers.
EU rules therefore allow certain forms of cooperation between producers, particularly through recognised producer organisations and associations of producer organisations.
Such cooperation may help farmers:
However, cooperation must remain within the limits established by EU agricultural and competition legislation. Agreements that eliminate competition, fix prices without legal justification or divide markets may still breach EU law.
Unfair trading practices in the food supply chain
Competition law is complemented by specific rules addressing imbalances in bargaining power within agricultural and food supply chains.
The Directive on unfair trading practices protects farmers and smaller suppliers against certain practices imposed by more powerful buyers.
Prohibited or restricted practices include:
The Directive is particularly relevant to farmers, cooperatives, food manufacturers and SMEs supplying supermarkets, wholesalers and other large buyers.
Mergers and concentration in agri-food markets
The European Commission reviews mergers and acquisitions that may affect competition in agricultural and food markets.
Relevant transactions may involve:
Merger control examines whether a transaction could reduce competition, increase prices, restrict innovation or weaken the negotiating position of farmers and consumers.
The assessment may also consider access to agricultural inputs, data, technology, distribution networks and retail channels.
Businesses can search relevant Commission decisions through the EU Competition Case Search.
State aid in agriculture
Public support is an important part of EU agricultural policy. Member States may provide aid to farmers, agricultural businesses and rural communities, but these measures must comply with the applicable EU State aid framework.
State aid may support:
State aid control helps ensure that public support pursues legitimate policy objectives without giving unjustified advantages to specific businesses or distorting competition between Member States.
The agricultural State aid framework operates alongside funding provided under the Common Agricultural Policy.
Fisheries and aquaculture
Competition rules also apply to fisheries and aquaculture.
Standard competition rules for fishery and aquaculture products are set out in Regulation (EU) No 1379/2013 on the common organisation of the markets in fishery and aquaculture products.
State aid in these sectors is closely connected with the Common Fisheries Policy, which governs the sustainable management of European fisheries and provides financial support for fisheries, aquaculture and coastal communities.
Since 1 January 2020, the European Commission’s Directorate-General for Competition has been responsible for State aid control in the fishery and aquaculture sector.
Competition-policy issues may concern:
Competition and the Farm to Fork transition
Competition policy also interacts with the EU’s broader objective of developing a more sustainable food system under the Farm to Fork Strategy.
The transition may involve cooperation between companies on sustainability, emissions reduction, animal welfare, food waste, traceability and circular production models.
Such cooperation can generate environmental and social benefits, but businesses must assess whether agreements restrict competition and whether any restrictions are necessary and proportionate to the sustainability objective pursued.
The challenge is to support greener food production while preserving market access, consumer choice and incentives for innovation.
Why this matters for businessesCompetition-policy developments in agriculture, food and fisheries can directly affect contracts, producer cooperation, public funding, mergers, distribution arrangements and relations with large buyers.
Businesses and professional organisations should monitor:
For farmers, cooperatives, food companies, retailers, fisheries businesses and public authorities, understanding the relationship between competition policy and sector-specific regulation is essential.
Follow EU competition cases, State aid decisions, merger reviews and regulatory developments shaping agriculture, food and fisheries in Europe.
The agri-food economy benefits significantly from the EU Single Market, common food legislation and the free movement of products across Member States. However, European food supply chains are highly diverse. Their length, structure and level of complexity vary according to the product, production method, market conditions and number of intermediaries involved.
How competition rules apply to food markets
For most food products, the standard EU competition rules apply in the same way as in other sectors.
These rules prohibit:
- anticompetitive agreements between companies;
- cartels and price fixing;
- market-sharing arrangements;
- abuses of a dominant position;
- mergers that could significantly reduce competition;
- selective public support that distorts the Single Market.
Competition enforcement may affect farmers, food processors, wholesalers, retailers, supermarket groups, producer organisations, input suppliers and digital platforms operating in the food economy.
The objective is to preserve open markets, encourage innovation and prevent practices that could reduce farmers’ commercial opportunities or increase prices for consumers.
The special position of agricultural products
Agricultural products receive specific treatment under EU law because competition policy must also take account of the objectives of the Common Agricultural Policy.
Under Article 42 of the Treaty on the Functioning of the European Union, the EU legislator may adapt the ordinary competition rules when they are applied to agricultural products.
These adaptations must consider the objectives set out in Article 39 TFEU, including:
- increasing agricultural productivity;
- ensuring a fair standard of living for agricultural communities;
- stabilising markets;
- guaranteeing the availability of supplies;
- ensuring reasonable consumer prices.
This means that EU competition law in agriculture must balance effective competition with the economic and social objectives of the CAP.
Cooperation between agricultural producers
Farmers often operate in fragmented markets and may have significantly less bargaining power than processors, wholesalers or large retailers.
EU rules therefore allow certain forms of cooperation between producers, particularly through recognised producer organisations and associations of producer organisations.
Such cooperation may help farmers:
- jointly market their products;
- plan production;
- improve storage and logistics;
- negotiate contracts;
- reduce production costs;
- strengthen their position in the supply chain.
However, cooperation must remain within the limits established by EU agricultural and competition legislation. Agreements that eliminate competition, fix prices without legal justification or divide markets may still breach EU law.
Unfair trading practices in the food supply chain
Competition law is complemented by specific rules addressing imbalances in bargaining power within agricultural and food supply chains.
The Directive on unfair trading practices protects farmers and smaller suppliers against certain practices imposed by more powerful buyers.
Prohibited or restricted practices include:
- late payments for agricultural and food products;
- last-minute cancellation of orders for perishable goods;
- unilateral changes to supply agreements;
- refusal to provide written confirmation of contractual terms;
- misuse of confidential commercial information;
- requiring suppliers to pay for product deterioration occurring after delivery;
- commercial retaliation against suppliers exercising their rights.
The Directive is particularly relevant to farmers, cooperatives, food manufacturers and SMEs supplying supermarkets, wholesalers and other large buyers.
Mergers and concentration in agri-food markets
The European Commission reviews mergers and acquisitions that may affect competition in agricultural and food markets.
Relevant transactions may involve:
- seed and crop-protection companies;
- fertiliser producers;
- food processors;
- meat and dairy companies;
- agricultural machinery manufacturers;
- wholesalers and retailers;
- supermarkets and grocery chains;
- food-delivery and e-commerce platforms.
Merger control examines whether a transaction could reduce competition, increase prices, restrict innovation or weaken the negotiating position of farmers and consumers.
The assessment may also consider access to agricultural inputs, data, technology, distribution networks and retail channels.
Businesses can search relevant Commission decisions through the EU Competition Case Search.
State aid in agriculture
Public support is an important part of EU agricultural policy. Member States may provide aid to farmers, agricultural businesses and rural communities, but these measures must comply with the applicable EU State aid framework.
State aid may support:
- investment in agricultural holdings;
- climate and environmental measures;
- animal health and welfare;
- risk prevention and crisis management;
- compensation for natural disasters;
- rural infrastructure;
- processing and marketing of agricultural products;
- research, innovation and digitalisation.
State aid control helps ensure that public support pursues legitimate policy objectives without giving unjustified advantages to specific businesses or distorting competition between Member States.
The agricultural State aid framework operates alongside funding provided under the Common Agricultural Policy.
Fisheries and aquaculture
Competition rules also apply to fisheries and aquaculture.
Standard competition rules for fishery and aquaculture products are set out in Regulation (EU) No 1379/2013 on the common organisation of the markets in fishery and aquaculture products.
State aid in these sectors is closely connected with the Common Fisheries Policy, which governs the sustainable management of European fisheries and provides financial support for fisheries, aquaculture and coastal communities.
Since 1 January 2020, the European Commission’s Directorate-General for Competition has been responsible for State aid control in the fishery and aquaculture sector.
Competition-policy issues may concern:
- fishing fleets and aquaculture facilities;
- processing and marketing;
- producer organisations;
- port and landing infrastructure;
- sustainability investments;
- compensation and crisis support;
- access to markets and distribution networks.
Competition and the Farm to Fork transition
Competition policy also interacts with the EU’s broader objective of developing a more sustainable food system under the Farm to Fork Strategy.
The transition may involve cooperation between companies on sustainability, emissions reduction, animal welfare, food waste, traceability and circular production models.
Such cooperation can generate environmental and social benefits, but businesses must assess whether agreements restrict competition and whether any restrictions are necessary and proportionate to the sustainability objective pursued.
The challenge is to support greener food production while preserving market access, consumer choice and incentives for innovation.
Why this matters for businessesCompetition-policy developments in agriculture, food and fisheries can directly affect contracts, producer cooperation, public funding, mergers, distribution arrangements and relations with large buyers.
Businesses and professional organisations should monitor:
- changes to agricultural competition rules;
- rules governing producer organisations;
- State aid schemes and Commission decisions;
- merger investigations in food and agricultural markets;
- antitrust and cartel proceedings;
- enforcement of unfair-trading-practices legislation;
- competition issues involving supermarket and retail groups;
- developments in fisheries and aquaculture support;
- sustainability agreements and supply-chain cooperation;
- consultations and reforms linked to the CAP and the food supply chain.
For farmers, cooperatives, food companies, retailers, fisheries businesses and public authorities, understanding the relationship between competition policy and sector-specific regulation is essential.
Follow EU competition cases, State aid decisions, merger reviews and regulatory developments shaping agriculture, food and fisheries in Europe.
Agriculture, Food and Fisheries Competition Cases
Businesses, producer organisations and public authorities can consult the Commission’s Agriculture, Food and Fisheries Cases and Judgments page to follow antitrust investigations, cartel decisions, merger reviews and State aid cases across agricultural, food, forestry, fisheries and aquaculture markets.
