16 Feb 2026
The French authorities have again imposed sanctions on EURELEC for continuing negotiations with some suppliers beyond the deadline of the 1st of March, a formal disposition unique to the French law. The recent hearing of EURELEC by the French Senate, as part of the parliamentary inquiry into the margins of manufacturers and large-scale retailers, clearly demonstrated the determination of the French public authorities to seek the extraterritorial application of their own national legislation, in contradiction with EU law and the recently adopted Cross-Border Enforcement Regulation, which was definitively approved this week in Brussels. EURELEC will continue to oppose this national strategy, in the name of consumer protection and the very principle of the Single Market.
EURELEC is a Brussels-based company, and only Belgian law applies to its activities and, in particular, to its negotiations with its European suppliers. This has been recalled and confirmed by a Brussels Court of Appeal decision of February 2024. The French authorities are therefore not entitled to impose administrative sanctions against EURELEC across their borders.
The behaviour of the French legislator and the French authorities, who wish to apply their own national legislation extraterritorially without taking into account its conflicting nature with other applicable laws, has the effect, to the detriment of European consumers, of undermining and impairing the functioning of the cross-border economic freedom guaranteed by the principles and rules of the EU internal market. This situation prevents companies established within the European Union from conducting cross-border negotiations and trading based on a single, harmonised legal framework applicable across all Member States — a prerequisite for ensuring legal certainty in any joint negotiation within the internal market.
This reflects the concern expressed by Enrico Letta in his high-level report on the future of the internal market commissioned by the EU Council and the EU Commission: “the renationalisation of sourcing and trading is bounded to affect ultimately the benefits that consumers derive from the Single Market”, pointing out in particular that “the EU (…) should provide a credible alternative to national measures aimed at restricting the possibility of sourcing and trading freely within the Single Market”1. Through cross-border negotiation and procurement, European Retail Alliances (ERAs), such as EURELEC, are helping to bring more transparency to the sometimes significant price differences between European countries demanded by large international FMCG manufacturers, and are leveraging a Europe wide negotiation towards large multinational manufacturers of A-brands, in order to offer European consumers, and therefore French consumers too, affordable and competitive prices. ERAs have a positive impact on the internal market, as recalled by the European Commission which confirmed in July 2023 that they could play a key role in “maintaining the capacity of retailers to reduce prices to consumers as well as ensuring competition between retailers” and that these alliances are “particularly important in the current context of high inflation”.
In May 2025, the European Commission unveiled its Single Market Strategy, with the main aim to reduce trade barriers. The Commission identified ten “Terrible Ten” Single Market barriers, with Territorial Supply Constraints (TSCs) being identified as one of them. The Commission has put tackling these barriers as a priority and also underlined how Territorial Supply Constraints (TSCs) harm the well-functioning of the Internal Market and hinder retailers from contributing to cross-border business. The extraterritorial application of French national laws, resulting in cross-border and illegitimate fines, is a striking example of such TSCs, which ultimately only impact European consumers, limiting choice and price competition. The European Union’s efforts to tackle these issues highlight the urgency and necessity to ensure consumers across the EU are considered. EURELEC positively welcomes the European Union’s efforts to ensure the Single Market is used to its full potential and to deter national laws from preventing the free flow of goods across borders. Ensuring the smooth operation of the Single Market is crucial for maintaining the competitiveness of European companies, as emphasised by all European Heads of State during their information retreat last week, accompanied by Enrico Letta and Mario Draghi. The European Commission also reminded that national legislation should not hinder European companies from expanding cross-border business within the EU.
This new French administrative sanction threatens the main beneficiaries of the EU internal market: European consumers. EURELEC will therefore use all legal means at its disposal to challenge any fine that is imposed by the French authorities and defend the principle of the primacy of European law over conflicting national laws. EURELEC will also encourage a public debate, at both European and French level, in order to guarantee consumers a fair price, while respecting the value chains of the products.
1 Enrico Letta, Much more than a market – Speed, Security, Solidarity | Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens, April 2024
Contact information: info@eurelec-trading.eu