The European Commission has launched an infringement procedure against Hungary, accusing it of imposing unfair limits on profit margins for non-Hungarian companies selling food and non-food products. The restrictions affect both supermarkets and drugstore chains, forcing many foreign companies to sell at a loss, according to Brussels.
According to the Commission, these measures violate Article 49 of the Treaty on the Functioning of the European Union (TFEU), which guarantees freedom of establishment and fair treatment of economic operators. Furthermore, public authorities should not impose constraints unless they pursue legitimate public interest objectives.
Hungary now has two months to provide a formal response and take corrective measures, otherwise Brussels can proceed with further action.
In parallel, the Commission has intensified its investigation into the Hungarian government's retail tax, taking it to the second phase of the infringement procedure. The dispute concerns the 4,5% rate imposed mainly on large foreign groups, as opposed to the more favourable 0-1% rate for franchisees. SPAR and the Austrian government had lodged a formal complaint in April 2024.
Minister Gergely Gulyás defended Hungary's position, saying that Budapest would resist European pressure to protect local consumers and businesses, accusing Brussels of only wanting to defend the interests of multinationals.
