In April 2018, the European Commission issued a proposal for a Directive on unfair trading practices in business-to-business relationships in the food supply chain. The proposed Directive targets the imbalance of power in buyer-supplier relationships where the supplier is a small and medium-sized enterprise (‘an SME’) and the buyer is not.
The EU’s Special Committee on Agriculture supported the Commission’s draft Directive. However, on the 1 October 2018, Members of the European Parliament that form part of the Agricultural Committee voted in favour of extending the protection afforded by the draft Directive to all producers and supplies, irrespective of whether they are SMEs. The Commission has criticised this approach, arguing that it extends beyond the scope of the Directive. The Council has yet to agree with the Parliament, under the co-decision procedure, as to whether protection should only be available to SME producers and suppliers.
You can read a more detailed article on the proposed Directive here.
This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Mamo TCV Advocates.