The European Commission has referred Hungary to the Court of Justice of the European Union over its caps on retail price margins, escalating a dispute over rules that Brussels says distort the single market.
The disputed legislation limits the gap between purchase and sale prices to 10% for certain food items and 15% for specified drugstore goods. The Commission argues these ceilings prevent retailers from covering operating costs such as wages, property, and taxes, rejecting Budapest's contention that the margin equates to profit. The government of Prime Minister Péter Magyar made the temporary measures permanent in May 2026, after initially extending them indefinitely in April.
Brussels considers the restrictions a violation of the EU services directive and freedom of establishment. The legal action follows formal notices sent in June 2025 and reasoned opinions issued in December 2025 that failed to resolve the standoff.