The Spanish competition authority, CNMC, has raised concerns regarding a proposed regulation by the Ministry of Agriculture, Fisheries, and Food that mandates the withdrawal of olive oil from the market in the 2025/2026 campaign if there is an excess supply.

This regulation would be triggered when the total of initial stocks and production exceeds 120% of the average from the previous six campaigns, with a maximum withdrawal of 20% of the estimated production.

While both European and national regulations allow for such measures, the CNMC cautions that they could negatively impact consumers, particularly those with lower incomes, as well as distributors and exporters, by driving up prices and diminishing the variety and quality of olive oil available.

The CNMC has made several recommendations to improve the regulation, including reinforcing its justification, exploring alternatives to mandatory withdrawals, and ensuring that any public intervention is proportional and transparent.

As a consultative body, the CNMC can be consulted by various legislative and governmental entities regarding this regulation, emphasizing the importance of considering its potential effects on market competition.