Directive (EU) 2019/633, adopted on 17 April 2019 by the European Parliament and the Council, introduces a harmonised EU framework to combat unfair trading practices (UTPs) in the agricultural and food supply chain. Recognising significant bargaining power imbalances, especially where smaller suppliers face larger, dominant buyers, the Directive defines a set of practices deemed unfair irrespective of contractual agreement—such as late payments, short-notice cancellations, unilateral contract changes, and commercial retaliation.

The scope of the Directive includes commercial transactions involving suppliers and buyers of agricultural and food products, applying thresholds based on annual turnover to determine the relationship's relative power. It also provides enforcement provisions requiring Member States to appoint national authorities empowered to receive complaints, conduct investigations, impose penalties, and ensure confidentiality to protect complainants.

To enhance effectiveness, the Directive encourages cooperation among national authorities and promotes the use of alternative dispute resolution mechanisms. It allows Member States to implement stricter rules beyond the minimum EU standards, provided they are compatible with internal market regulations.

The Directive entered into force in May 2019, with Member States required to transpose its measures by 1 May 2021 and apply them from 1 November 2021. An initial evaluation of the Directive’s effectiveness is scheduled for completion by 1 November 2025.