The European Parliament and Council Regulation (EU) 2026/697, which came into force on March 31, 2026, aims to improve cross-border cooperation among enforcement authorities to address unfair trading practices in the agricultural and food supply chain. The regulation will be implemented starting September 10, 2027, enhancing supplier protection and promoting fair competition across the EU.

The Latvian Competition Council (KP) is responsible for overseeing the implementation of the Unfair Trading Practices Prohibition Law in Latvia, which incorporates the provisions of Directive 2019/633. With the introduction of Regulation 2026/697, KP's collaboration with other EU enforcement authorities will become more structured, allowing for more effective handling of cross-border cases of unfair trading practices.

Regulation 2026/697 significantly strengthens the ability of enforcement authorities to cooperate in cross-border cases. It establishes direct mechanisms to prevent or halt unfair trading practices affecting multiple countries, ensuring more effective investigations and enforcement, thereby reducing the chances of evading responsibility due to differing regulations or jurisdictions.

The regulation introduces clear mutual assistance mechanisms between member state authorities, including information exchange, investigative actions, and decision enforcement. It defines two parties involved: the requesting enforcement authority and the receiving enforcement authority, with specific types of requests outlined for cross-border cases.

Enforcement authorities are required to respond to information requests from other member states within 90 days, with a possible extension of 30 days. Requests can only seek information necessary to determine if unfair trading practices have occurred.

Additionally, the regulation allows for the enforcement of fines or other effective sanctions in another member state if a company lacks sufficient assets in the country where the violation was identified. This is only possible after a final decision has been made.

Unfair trading practices involving at least three member states are classified as “widely spread unfair trading practices with a cross-border dimension,” necessitating coordinated action among enforcement authorities based on mutual agreement and notification to the European Commission.

Member state authorities can also voluntarily cooperate if the type of unfair trading practice is prohibited in both countries, including cases where additional prohibitions have been established in national laws based on Directive 2019/633.

Enforcement authorities are authorized to share information and use any factual or legal circumstances as evidence, including confidential information, while respecting the legitimate interests of individuals and businesses, including trade secrets and intellectual property rights.

Finally, Regulation 2026/697 does not affect EU and national rules on private international law, particularly those concerning judicial jurisdiction and applicable laws.