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Competition Policy

Competition law plays a crucial role in addressing power imbalances in supply chains, which must be rectified to ensure producers and workers receive a fair share of trade benefits. Historically, competition law encompassed a broader understanding of public interest objectives, but it has increasingly become a hurdle for advancing sustainability. The currently dominant interpretation prioritises short-term consumer price reductions, neglecting critical social and environmental concerns. As a result, sustainability considerations are excluded from assessments of mergers and exemptions for sectoral collaborations aimed at achieving sustainability. This narrow focus has a chilling effect on supply chain actors' willingness to engage in discussions about issues like farmers’ incomes, due to fear of penalties under competition law.

At the core of the problem is a restrictive view of consumer welfare that fails to align with the Sustainable Development Goals (SDGs), broader EU treaty provisions, and the long-term interests of EU consumers and citizens. Without reform, competition law risks undermining the EU's ability to achieve sustainable and equitable economic development.

Competition Policy

Our View

At the FTAO, we believe the EU must take decisive steps to align competition law with the urgent need for sustainable development. Competition policy should not hinder, but rather enable, meaningful collaboration among companies to address pressing sustainability challenges.

To advance towards a sustainable approach to competitiveness, the EU should clarify the boundaries of competition law and provide clear guidelines that allow companies to collaborate on sustainability initiatives without fear of breaching regulations. In addition, the interpretation of consumer welfare must be broadened to include social and environmental dimensions.

Get in Touch

Need more information? Contact our policy expert!

Jorge Conesa

Jorge Conesa, Managing Director

conesa@fairtrade-advocacy.org