Euro Coop and Independent Retail Europe Warn Against Extraterritorial Application of National UTP Laws

Brussels, 2 July 2025 – Ahead of the AGRI Committee vote scheduled for 15 July, Euro Coop and Independent Retail Europe express strong concern over proposed amendments that risk undermining the integrity of the EU single market for food products.

The EU Commission’s proposal aims to strengthen cross-border cooperation in enforcing the Directive on Unfair Trading Practices (UTPs) in the food supply chain. However, several amendments tabled in the AGRI Committee would open the door to the extraterritorial application of national UTP rules that go beyond the EU baseline. In practice, this would allow Member States to apply their own national laws to cross-border contracts, even when those contracts are governed by the law of another Member State under EU private international law.

Such an approach would create serious legal uncertainty and administrative complexity for businesses operating across borders. It could discourage cross-border sourcing and trade, ultimately fragmenting the single market and weakening the food supply chain. This would have negative consequences for all actors involved — from farmers and suppliers to retailers and, most importantly, consumers.

To safeguard the single market, Euro Coop and Independent Retail Europe call on AGRI Committee members to support the position adopted by the Internal Market and Consumer Protection (IMCO) Committee. The IMCO opinion rightly clarifies that stricter national UTP rules may only apply in cross-border cases if the same prohibitions exist in both the applicant and the requested Member States, and only when these rules are compatible with the principles of the internal market.

A coherent and legally predictable enforcement framework is essential to ensure fair trading practices while preserving the benefits of an integrated European food market.

Read the letter