EU Takes Hungary to Court over Discriminatory Retail Legislation
Brussel, woensdag, 18 juni 2025.
The European Commission has initiated two formal infringement procedures against Hungary regarding national retail legislation that potentially disadvantages foreign companies. The procedures focus on legal restrictions in the food and drugstore sectors that may violate European competition rules and freedom of establishment. The Commission argues that the current regulations disproportionately hinder the operations of non-Hungarian enterprises, potentially forcing them to operate at loss-making rates.
Background of the Infringement Procedure
The European Commission has launched two formal infringement procedures against Hungary for potential violation of European competition rules. These procedures specifically target retail legislation in the food and drugstore sectors that may discriminate against foreign companies [1]. The Commission contends that Hungarian legislation could seriously restrict freedom of establishment and competition within the European Union [2].
Legal Considerations
According to the Commission, Hungary may be breaching Article 49 of the Treaty on the Functioning of the European Union (TFEU), which guarantees freedom of establishment for enterprises [1]. The national retail restrictions could potentially force foreign companies to operate at loss-making rates, constituting a serious impediment to free market operations [2].
Next Steps
Hungary has two months to respond to the official warning letters from the European Commission [1]. If the objections are not adequately addressed, this could lead to a reasoned opinion and potentially a procedure before the European Court of Justice [2].