In Austria, the so-called “Austria price surcharge” continues to cause outrage. Surveys repeatedly show that Austrians pay more for the same products than consumers in countries like Germany. The Austrian Retail Association and trade union GPA are calling for a ban on territorial supply constraints (TSCs) to ensure fair product availability within the EU single market. They expressed concern over a perceived watering-down of the EU’s original plan.
Back in May, the European Commission announced it would draft a law by the end of 2026 to ban TSCs imposed by the global food industry. But in a final version of its internal market strategy, published later that month, the commitment was softened: the Commission now merely promises to develop “tools to combat unjustified territorial supply constraints,” especially those beyond the scope of existing competition law. GPA and the Retail Association suspect that pressure from multinational brand manufacturers influenced this shift.
Same Products, Different Prices in Different Countries
Territorial Supply Constraints are restrictions imposed by certain large manufacturers that make it difficult or impossible for retailers to buy products in one EU member state and sell them in another. These practices allow global producers to sell the same goods at different prices in different markets.
“These country-specific distribution strategies—especially in the food sector—hit Austrian retailers hard,” said GPA head and SPÖ politician Barbara Teiber. “Our companies are not allowed to purchase where it’s cheapest. Ultimately, consumers pay the price, especially for everyday goods like food, cosmetics, or cleaning supplies.”
“More than 90% of procurement in the grocery retail sector still happens nationally within the EU single market,” said Rainer Will, managing director of the Retail Association. “This is due to multinational food companies artificially segmenting the market along national borders, making international purchasing nearly impossible.”
Small Countries Hit Hardest
For example, an Austrian retailer can only purchase hairspray from a multinational manufacturer through its Austrian distributor. The price is €3.20 per unit—while a German retailer pays just €2 for the exact same product. Wholesale prices in smaller countries like Austria are significantly higher than in larger ones like Germany. The same applies to countries like Denmark, Belgium, or Luxembourg.
According to the Austrian Competition Authority, brand-name products cost at least 15–20% more in Austria than in Germany. This “Austria surcharge” is the result of market practices by global corporations.
Up to 60% Higher Prices for Austrian Retailers
“Austrian retailers currently pay up to 60% more for some products than their German counterparts,” said Will. The difference is essentially “pure profit” for global brand manufacturers.
Teiber pointed to an EU study suggesting that removing TSCs could save European consumers up to €14 billion annually. “In these economically challenging times, that would be meaningful relief for millions of people—and a long-overdue step toward fairer prices.”
EU authorities have already taken action in some cases. In May 2024, Mondelez—the maker of Milka chocolate—was fined €334 million for restricting cross-border trade. In 2019, Anheuser-Busch InBev was fined €200 million. Procter & Gamble is currently under investigation for similar alleged violations.
Calls for Fast Implementation of EU Strategy
GPA and the Retail Association argue that many of these practices are not yet covered by EU competition law. They welcome the Commission’s stated intent to address all TSCs, even those not previously regulated, though they say the latest announcements are “still not good enough.” They urge rapid legal implementation of the internal market strategy—both at the EU level and in national legislation.
“It’s time to ensure equal purchasing conditions for retailers in all EU member states,” said Will, “and to eliminate artificial price differences that unfairly burden domestic trade.”
