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The EC said Hungary limited the margin between purchase prices and sales prices of products to such a low level that it no longer allows companies to cover their costs, forcing retailers to sell their products at a loss.
The Commission said the measures mainly affect non-Hungarian undertakings.
The EC noted that Hungary introduced rules restricting markup caps to 10% for certain food products and 15% for certain drugstore articles in 2025.
These rules also required retailers to maintain the quantities of the concerned products sold prior to the introduction of the markup caps. It said retailers incur many costs beyond the costs of purchasing products, including employee-related expenses and costs of transport, storage and facilities, and the prescribed maximum price margins do not allow for covering these.
“The combined effect of fixing maximum price margins and requiring retailers to sell the same quantities of the concerned products creates losses for existing operators already in the market and removes any incentive for new operators willing to start such economic activities to establish themselves in Hungary,” the EC said in the statement.
The EC said the Hungarian measures are in violation of the Services Directive and and are liable to “impose discriminatory and disproportionate requirements, and to render less attractive the exercise by EU nationals of the freedom of establishment”.
The Commission sent letters of formal notice in June 2025, followed by reasoned opinions in December 2025. As the Commission considers Hungary is still in breach of EU rules, it has decided to refer the cases to the CJEU.
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