The European Commission has issued its first formal opinion permitting French winemakers to collaborate in promoting sustainable production practices. This decision provides important guidance for agricultural producers across the EU seeking to benefit from the antitrust exemption for sustainability initiatives under Article 210a of Regulation (EU) No 1308/2013 (the Common Organization of Markets in Agricultural Products, or "CMO Regulation").
Key Points:
- The Commission confirmed that the agreement among French winemakers satisfies all requirements of Article 210a of the CMO Regulation, which allows certain forms of cooperation between agricultural producers for sustainability purposes.
- The agreement was found to:
- Involve agricultural producers;
- Concern the trade of agricultural products;
- Aim to achieve multiple sustainability objectives and implement standards exceeding those required by EU or national law; and
- Contain only restrictions on competition that are strictly necessary to achieve these higher sustainability standards.
- The initiative is intended to address increasing consumer price sensitivity and a lack of awareness regarding the costs associated with sustainable wine production.
The EU’s competition chief, Teresa Ribera, expressed hope that this guidance will encourage other producers with similar sustainability agreements to seek Commission approval.
This development marks a significant step in clarifying the application of EU competition law to sustainability-driven cooperation in the agricultural sector. Stakeholders considering similar initiatives are encouraged to review the Commission’s approach and assess the potential for compliance under Article 210a.
The Commission issued today its first opinion regarding the compatibility of a sustainability agreement with competition rules for the agricultural sector. The opinion concerns an agreement on the setting of indicative prices for wine produced in accordance with the standards for organic and for Haute Valeur Environnementale (‘HVE') wines, in the French region of Occitanie. The envisaged agreement is between producers of wine meeting these standards and buyers of such wine, to guide bulk wine transactions. The objective is to incentivise the relevant producers to maintain their sustainable production practices.
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