EuroCommerce, the main European organisation representing the retail and wholesale sector, has lodged a formal complaint with the European Commission. The subject of the complaint is Law 2023-221 of 30 March 2023 also known as Egalim 3 or Loi Descrozaille adopted by the French Parliament earlier this year and intended to enter into force in March 2024. According to EuroCommerce, which brings together national associations from 27 countries, the text of the transalpine legislation violates the EU rules on the free movement of goods and services in the single market. 

"There is a real risk -EuroCommerce explains in an official note- that the Descrozaille law creates a dangerous precedent and strengthens the fragmentation of the single market, already imposed by some large global producers using territorial supply constraints. This costs EU consumers 14 billion Euros each year, according to a European Commission study".

"EuroCommerce -continues the note- asks the European Commission to take urgent action against this blatant violation of the Ue rules on free movement and choice of law in trade relations".

Christel Delberghe, director-general of EuroCommerce, points out: "Loi Descrozaille prevents retailers and wholesalers from seeking better supply conditions in the European single market. This, in turn, prevents retailers and wholesalers from offering European consumers a wider choice and more affordable prices. We call on the European Commission to urgently address this violation of EU rules on the choice of law and free movement with the French authorities".

The Loi Descrozaille, adds the organization in its statement, is the third in a series of laws on business relations between suppliers and buyers. " It violates EU rules on the free movement of goods, services and establishment, as well as EU laws on choice of law, imposing French law and giving exclusive jurisdiction to the French courts for all commercial negotiations involving products intended for the French market". This prevents retailers and wholesalers, such as e-commerce operators, European retail alliances and supermarket chains seeking to buy at EU level, "to benefit from economies of scale in the single market and deprive consumers of the benefits of a wider selection of more affordable products. As a result, the power of global producers, which exploit the single market fully by producing centrally, is further strengthened".

EuroCommerce wonders why "many sectors of the economy are encouraged to seek economies of scale in Europe (e.g. vaccines, energy), while this is not the case for the rapidly changing consumer goods sector".