European wholesalers abuse their dominant market positions

09.06.2016 | European Parliament , European Union
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European wholesalers abuse their dominant market positions

The European Parliament aims to discourage unfair trading practices, affecting micro-, small and medium sized enterprises on the European market. SMEs, which make up over 90 percent of the EU’s economic structure, should benefit from a better protection in the food supply chain - concluded the MEPs during the June 6th-9th June Strasbourg plenary session the European Parliament.

This was the reason why the Parliament adopted a report on the unfair trade practices on the food supply chain. In the opinion of Csaba Sógor it is clear that large companies abuse their dominant position on the European market putting smaller enterprises and farmers with less capital in an impossible situation. "It seems the market is not able to self-regulate in this regard. EU and Member State regulations are therefore clearly needed. The European Union must have a legislative framework to eliminate unfair trading practices in the food supply chain" – said the RMDSZ MEP. 

According to the MEPs there is a need to clearly define and sanction unfair trade practices in the EU. Therefore, the EP called upon the Commission to put forward a proposal for an EU level regulatory framework but at the same time also urged Member States to support and encourage farmers to join producer organizations, so they can increase their bargaining power and strengthen their position in the food supply chain.