The EU prohibits Hungary from lowering food prices

Published 15 September 2024 at 12.01

EU. The EU Court of Justice now invalidates Hungary's law on fixed prices for certain basic foodstuffs such as flour, eggs and milk. According to the European Court of Justice, the rules hinder free competition and are against European law.

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The Hungarian government, represented by Economy Minister Márton Nagy, has criticized the decision and accuses large multinational companies to try to maximize their profits at the expense of Hungarian families.

Nagy argued that companies such as Spar and the European Commission are jointly opposing Hungary's attempts to protect its consumers through price controls on a few basic goods.

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The Ministry of National Economy stressed that the government will continue to support price reductions to protect the country's consumers.

The background to the conflict is a law that was introduced during the pandemic and later adjusted due to the war in Ukraine.

The law forced retailers to keep certain products in stock and sell them at fixed prices, upsetting grocery giant Spar, which reported it to the European Commission.

The court decision now means these rules are in breach of EU principles of free competition.