Unfair practices in food 2026: what changes for distributors and suppliers

Key data

Distributors and large buyers in the agri-food chain can no longer rely on breaches committed in one country going unnoticed in another. The Regulation (EU) 2026/697, in force since 11 March 2026, creates a cooperation system between the national authorities of all Member States to ensure effective compliance with the Directive (EU) 2019/633, which prohibits unfair trading practices in the agricultural and food supply chain.

The change is significant: until now, surveillance was national and fragmented. From this regulation onwards, an investigation initiated in Spain can count on information and cooperation from German, French or Italian authorities if the breach has a cross-border dimension.

What does this regulation establish?

Regulation (EU) 2026/697 does not create new conduct prohibitions: those were already set out in Directive (EU) 2019/633. What it does is build the architecture for coordinated surveillance and enforcement between countries. Its three pillars are:

• Exchange of information between national control authorities of different Member States when signs of cross-border breach are detected.
• Mutual assistance: one authority can request another to act, investigate or gather evidence in its territory.
• Coordination of cross-border investigations when breaches affect multiple EU countries simultaneously.

Spanish control authorities will need to adapt their internal procedures to these European cooperation mechanisms in order to both receive and send mutual assistance requests.

Economic and operational impact

The most direct impact is the increased risk of detection and sanctions for companies operating in several European markets that until now could benefit from the lack of coordination between national authorities.

For distributors and large buyers, this translates into:

• Greater likelihood that practices such as payment delays or unilateral order cancellations will be investigated, even if the affected supplier is in another country.
• Need to review and standardize contracts with suppliers across the entire European supply chain.
• Increased compliance costs: internal audits, review of general purchasing conditions and training of purchasing teams.

For farmers, cooperatives and SME suppliers, the impact is positive: the protection already offered by Directive 2019/633 becomes more real and effective, especially in commercial relationships with buyers established in other EU countries.

Who does it affect?

• Large distributors and supermarket chains that purchase from agricultural or food suppliers in several EU countries.
• Agri-food companies with dominant bargaining power that impose contractual conditions on their suppliers.
• Farmers and primary producers that supply to buyers with greater market power, especially in cross-border relationships.
• Agricultural cooperatives that act as intermediaries or suppliers in the food supply chain.
• SMEs in the food sector that sell to large distributors or European purchasing platforms.
• Spanish control authorities responsible for monitoring compliance with Directive 2019/633, which will need to adapt their procedures to the new cooperation mechanisms.

Practical example

Imagine a Spanish olive oil producers' cooperative that supplies a large German distributor. Until now, if that distributor cancelled orders without notice or delayed payments beyond what was permitted, the cooperative had to file a complaint with Spanish authorities, who had no direct access to information or procedures of the German authority.

With Regulation (EU) 2026/697, the Spanish authority can formally request assistance from its German counterpart: exchange information about the distributor's behavior, coordinate the investigation and act jointly. The German distributor knows that its conduct in Spain can be investigated with full cooperation from the authorities of its own country.

This same scenario applies to any relationship between a Spanish supplier and a buyer established in another Member State, or vice versa.

What should companies do now?

1. Review all contracts with agri-food suppliers to identify clauses that may be considered abusive under Directive (EU) 2019/633: payment terms, cancellation conditions, unilateral price reviews.
2. Verify compliance with payment periods established in Directive 2019/633 with all food chain suppliers, regardless of the country in which they are established.
3. Eliminate unilateral order cancellation practices without reasonable notice, especially in contracts with suppliers from other EU countries.
4. Train purchasing teams on the specific prohibitions of Directive 2019/633 and the new risk of coordinated investigations at European level.
5. Establish an internal contract review channel so that any new commercial condition is evaluated before its application, reducing the risk of breach.
6. If you are a supplier or cooperative: know your rights under Directive 2019/633 and document any abusive practices by your buyers, as you now have more tools to file complaints with the authorities.