EU plans to prohibition: End of the Austria premium for food!

EU plans to prohibition: End of the Austria premium for food!

Vienna, Österreich - Minister of Economics Wolfgang Hattmannsdorfer (ÖVP) and Natalie Harsdorf, head of the Federal Competition Authority, asked the EU Commission to take immediate action against territorial delivery restrictions, also known as the "Austria-Losing". This requirement takes place against the background of rapidly increasing food prices, which are favored by the practice of territorial delivery restrictions. According to vienna.at the EU Commission is planning to present a legislative proposal by the end of 2025 to prohibit unauthorized restrictions.

Territorial delivery restrictions (TSCS) hinder the resale of products to other EU member states and lead to consumers in smaller EU countries, such as Austria, pay higher prices than in larger countries, such as Germany. Hattmannsdorfer and Harsdorf welcome the EU's announcements to take measures against TSCs, criticize the lack of a specific legislative proposal. The EU Commission estimates that European consumers avoid around 14 billion euros annually through these price manipulations.

call to remove price differences

The managing director of the trade association, Rainer Will, supports the initiative of the EU Commission and indicates the negative effects of the TSCs. This practice enables international manufacturers to offer products in different markets at different prices, which strongly disadvantages Austrian trading companies. An example illustrates this: an Austrian dealer could pay 3.20 euros for a product, while a German dealer only spends 2 euros for it. This inequality leads to higher price pollution for Austrian consumers, especially with everyday consumer goods such as food and cosmetics, such as [ots.at] (https://www.ots.at/presseaus-sung/ots_20250521_ots0142/schlauf-mit-oesterreich-schlag-in-krefung-eu-kurigtigt-verbot-territorialer delivery surpluses-an) reports.

In order to counteract the unfair competitive conditions, the trade association calls for a rapid implementation of the ban at EU and national level. The aim is to create the same purchase conditions for dealers in all member states and to reduce the artificial price differences. According to an EU study, the abolition of these TSCs could enable consumers annual savings of up to 14 billion euros.

future steps and political support

The EU Commission announced that suitable instruments should be developed by the end of 2026 to combat the unjustified territorial delivery restrictions. These steps were not only considered necessary and urgent by Hattmannsdorfer and Harsdorf, but also by Rainer. Companies that violate such restrictions, as has already been observed in the past, could also be proven with high punishments, which underlines the seriousness of the implementation.