EU Takes Legal Action Against Hungary for Food Price Caps on Foreign Retailers
European Commission Challenges Hungary's Retail Margin Limits
Background of the Legal Case
BRUSSELS, July 8 (Reuters) - The European Commission has launched a case against Hungary at the EU Court of Justice, to have it scrap a limit set on retail price margins on food products and drugstore articles levied mostly on non-Hungarian retailers.
Hungary's Price Cap Policy
Hungary last year already said it was ready to challenge Brussels on the issue, a 10% limit on retail margins for 30 food staples introduced in March 2025 to battle inflation.
Extension and Permanency of Measures
Since then, the government has repeatedly extended the duration and expanded the range of products that fall under the measures, which were made permanent in May.
EU Commission's Criticism of Hungary's Approach
"Hungary wrongly claims that the difference between the sourcing price and the sales price equals the profit of the companies concerned, without taking into consideration that they also have substantial additional costs, such as for personnel, real estate and taxes," the EU Commission said.
(Reporting by Bart Meijer, editing by Inti Landauro)