On 21 May the European Commission published a Single Market Strategy with a series of actions aimed at removing the most harmful barriers to intra-EU trade and investments.

One of the “terrible ten” barriers identified in the Strategy are territorial supply constraints (‘TSCs’).

According to the Commission TSCs limit cross-border trade in the Single Market by preventing retailers from buying products in one Member State and selling them in another.

During the Commission’s 07 April Stakeholder Dialogue, the 250+ participants discussed real world examples of TSCs, focused on the three most frequent practices:

·        Refusal to supply certain retailers or wholesalers across borders; 

·        Differences in labelling and packaging for identical products; and

·        Price differentiation between EU countries.

Against the backdrop of DG COMP’s recent investigations, the Strategy calls for the development of tools to act against unjustified TSCs covering situations beyond those captured by competition law such as the unilateral practices of large manufacturers.

The Commission acknowledges that some supply constraints may be justified by objective factors such as national regulatory requirements, cost differences or genuine consumer preferences.

Pending a call for evidence and public consultation expected soon - maybe leading to a legislative proposal next year - participants in this 'Chatham House rule' hybrid discussion will debate with Philippe Chauve how the current spotlight on TSCs and the lessons of COMP’s recent antitrust investigations into unilateral practices might apply to future cases, while also learning about the challenges of the Commission’s initiative.

Press release, Q&A and Factsheet on the Single Market Strategy (21.05.25)

Stakeholder Dialogue on Territorial Supply Constraints (07.04.25)

TSCs European Parliament Briefing Note 2025