Concerns about price transparency and price intervention measures – a public letter

National Price Regulations: Bad for the Market, Bad for Consumers

In several EU Member States, hashtagretail and hashtagwholesale are witnessing the resurgence of price regulation measures on various products, especially food, amidst rising inflation.

Starting last Monday, Hungary implemented a margin cap law. Bulgaria is discussing mark-up caps, while a draft order in Romania may soon require retailers to display the mark-up they put on their products.

At first glance, these measures might seem consumer-friendly, aiming to keep prices low. However, in reality, they disrupt local markets and competition and retailers pricing strategies, with evidence suggesting they may even exacerbate inflation and raise the price of the other products consumers buy.

Post the 2022 inflation peak, numerous authorities and independent studies across Austria, Belgium, Czechia, Denmark, Germany, Lithuania, the Netherlands, Slovakia, Spain, Sweden, and the UK have confirmed that:
- consumer prices aligned with general price trends and did not rise more than justified by increased costs;
- retailers’ margins were pressured and decreased;
- costs rose more than retail sales prices.

This indicates that the retail market is functioning well, with our sector striving to keep consumer prices low. Therefore, it's crucial to stop interfering with our margins, mark-ups, and prices, as it ultimately makes things more expensive for consumers.

Case law (Case C‑557/23 & C-400/19) provides the Commission with strong arguments to act against price regulation measures.