EuroCommerce is calling for the immediate abolition of the maximum profit margins applied in Hungary’s retail sector, following the Hungarian government’s announcement that it intends to phase out gradually the measures introduced in 2025 for food and non-food products.
The European organisation is urging the government to announce a specific timetable for withdrawing the measures and to implement it without delay, in order to reduce uncertainty in the market.
The issue has already reached the Court of Justice of the European Union. The European Commission has launched infringement proceedings against Hungary over the caps on profit margins for food and non-food products, and both cases, numbered INFR(2025)2052 and INFR(2025)2102, have been referred to the Court.
Commission objects on single-market grounds
The Commission has raised concerns about the compatibility of the measures with single-market rules, arguing that they disproportionately affect businesses from other member states. It has also pointed out that the low permitted margins may not be enough to cover the operating costs of some retailers.
At the same time, EuroCommerce has expressed serious concern over the Hungarian government’s decision to increase the special tax levied on retail businesses. As it points out, instead of beginning to phase out the tax, the government has announced an additional burden for the sector.
This issue is also the subject of infringement proceedings by the European Commission, numbered INFR(2024)4022, which have likewise been referred to the Court of Justice of the EU.
Restrictions on competition and market distortions
According to EuroCommerce, special tax measures imposed on specific sectors restrict competition in the single market and place a burden on businesses, supply chains and consumers. The organisation argues that abolishing the caps, alongside a more predictable tax environment, would allow businesses to operate with greater stability and offer consumers more choice.
EuroCommerce links the Hungarian case to the wider trend of government intervention in prices seen in several European markets. Its statement specifically refers to Bulgaria, Croatia and Romania, where similar measures are being pursued.
In the organisation’s view, national price-regulation measures focus on the final stage of the supply chain, without addressing the underlying causes that determine product costs.
Previous rulings and relevance to Greece
EuroCommerce also cites previous rulings by the Court of Justice of the European Union, arguing that similar national price regulations have been rejected in the past.
The case is also of interest to the Greek market, where similar measures have been introduced in recent years. However, EuroCommerce’s statement makes no reference to Greece.