In the spring of 2024, the Belgian government conducted an extensive review of the agricultural and food supply chains. This investigation highlighted contractual imbalances wherein suppliers, farmers, and franchisees were disadvantaged by dominant players like supermarket chains.
This analysis led to two significant Royal Decrees dated 4 July 2024 and 20 June 2024, aimed at promoting fair business practices in these sectors. Their respective entries into force are 1 October 2024 and 1 January 2025.
Our newsletter reviews:
- Background: we delve into the context and the adoption process of these Royal Decrees.
- Application scope: The Decrees apply to suppliers of food and agricultural products, as well as franchisees involved in food-dominant retail trade in non-specialised stores.
- New blacklisted and greylisted trading practices and clauses: trading practices excluding hardship or allowing the buyer to pay the supplier a price below the cost of production are banned. Clauses forcing the continuation of a structurally loss-making activity, are deemed abusive and prohibited.
It is therefore essential for those targeted by these Royal Decrees to review their existing agreements and make the necessary changes. For a comprehensive understanding of these legislative changes, access our detailed analysis.
Stay Informed:
Regardless of whether you operate in B2B or B2C sectors, our cross-practice team is committed to keeping you ahead of legislative changes that could affect your business. Explore our newsletters, available on our dedicated microsite, for updates on pivotal legal changes and emerging market trends that might impact you.
For further information, please contact:
Florence Danis, Partner, Linklaters
florence.danis@linklaters.com
