The regulation impedes retailers in setting some of their prices freely without adequate justification, which is in breach of the EU's services directive, the ruling said.

It also runs afoul of EU regulations on common organisation of the markets in agricultural products and the directive on internal market services, it said.

The measures are also disproportionate as they do not serve the stated objectives and are not suitable for ensuring their achievement, the ruling said.

The regulation affects only retailers whose annual revenue exceeds a predetermined threshold, which are generally located in cities rather than in rural areas.

A significant proportion of disadvantaged consumers therefore have difficulty accessing discounted food products, which is contrary to the Directive on Services in the Internal Market, the ruling said.

MTI Stock Photo

Source: MTI – Hungary’s national news agency since 1881.

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