In a judgment delivered in March 2021, the CJEU ruled that Hungarian regulations requiring retailers to apply the same profit margins to domestic and imported farm and food products violate European Union law.

In a follow-up after the ruling, Hungarian authorities told the EC that preparatory work had begun to implement the CJEU judgment, but the EU's executive received no further information on compliance measures.

Hungarian authorities have two months to address the issues raised in the EC's letter of formal notice. If the EC deems their response unsatisfactory, it may refer again the case to the CJEU and ask for financial penalties on Hungary.