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AFCA publishes annual report on its targeted measures against unfair trading practices in the food sector in 2025

In 2023, the AFCA conducted a sector inquiry into the food industry and found that a large number of suppliers had encountered unfair trading practices. More than a third of all companies stated that they had been threatened at least once with delisting or told that a competitor would be chosen over them unless they accepted specific prices and terms. This prompted the AFCA to prioritise unfair trading practices.

Annual Report on Unfair Trading Practices 2025 (in German)

In 2025, the Austrian Federal Competition Authority (AFCA) once again stepped up its commitment to the prevention of unfair trading practices. Additionally, there were some interesting legal developments last year.

Unfair trading practices weaken confidence in the entire supply chain and hit those that are at the bottom of that chain particularly hard. As the competition authority, we consistently campaign for clear rules and their effective enforcement. We want a fair supply chain, as part of which businesses interact as equal partners,” explains Director General Natalie Harsdorf.

In its fight against unfair trading practices, the AFCA closely cooperates with the ministerial Fairness Office, a first point of contact for suppliers affected by unfair trading practices, and engages in regular dialogue with it on the latest developments. The Fairness Office also published its own Annual Report 2025 today.

FWBG investigations in 2025

The AFCA may initiate investigations and, in the event of a breach, apply to the Cartel Court to have a fine of up to EUR 500,000 imposed. There are currently three cases pending that relate to the Fair Competition Act (FWBG):
• Bonus requested to finance digital distribution channels (press release of 6 March 2025)
• Delayed payment for fruit growers (press release of 26 February 2024)
• Payments requested to support an internal transformation process (press release of 10 November 2023).

Investigations into the dairy market

The Federal Competition Authority received several complaints about alleged unilateral modifications of supply contracts. In the course of the introduction of animal welfare standards at dairy farms, supply agreements were allegedly changed unilaterally. The facts of the case are currently under investigation. The question of whether unfair trading practice rules also apply to dairies organised in the form of cooperatives was also raised in this context, and referred to the European Commission. When the Commission’s legal interpretation becomes available, it will be taken account of in the ongoing investigations.

Investigations regarding a retailer’s central warehouse

Another case related to possible additional costs connected with supplying a retailer’s central warehouse. In this case, however, the suspicions were not borne out. The questioning of selected suppliers did not yield any evidence that pressure had been exerted or reprisals threatened. Since no breach of the FWBG could be determined, the proceedings were discontinued in February 2026.

AFCA remit

The AFCA has been responsible for investigations into breaches of the Fair Competition Act (FWBG) since 2022. The Act protects suppliers of food and agricultural products from unfair trading practices such as unilateral contract modifications, requests for unjustified payments or payments for quality issues that are outside the supplier’s control.
The AFCA may initiate investigations and, in the event of a breach, apply to have a fine of up to EUR 500,000 imposed. Since the Act took effect, the AFCA has prioritised the prosecution of breaches.

Current legal developments

In 2025, the AFCA dealt with a host of fundamental interpretation issues surrounding the FWBG, and the European legal framework also changed. All applications made relating to the FWBG were affected by preliminary ruling proceedings at the Court of Justice of the European Union (CJEU).

The cases concerned:

• Two cases related to payments with no link to the sale of agricultural and food products
• One case related to delayed payments to two fruit growers.

The proceedings were halted upon the referral to the EU Court of Justice. In one of the two preliminary ruling proceedings (C-311/24), the CJEU reached a judgment in January 2026 (see press release of 23 February 2026).

In December 2025, the European Commission published a report on its evaluation of the UTP Directive. The AFCA was involved in the evaluation process, taking part in consultations and expert group meetings. The Commission found some positive developments in combating unfair trading practices but still sees room for improvement.

It highlighted the following shortcomings:

• The “fear factor” among suppliers, preventing them from making complaints
• The need for more ex officio investigations
• Differences in implementation and enforcement across the Member States
• Possible new unfair trading practices arising in connection with market changes.

The AFCA was involved in the consultation process.

In December 2024, the Commission submitted a Proposal for a Regulation on cooperation among responsible enforcement authorities for the cross-border enforcement of the UTP Directive. The Proposal was adopted by the European Parliament in February 2026.