Brief

"On 05/02/2025", the "French Competition Authority" issued an update regarding "Sustainability: the Autorité publishes informal guidance on the creation of a system for the collective financing of the additional costs and risks associated with the agro-ecological transition". The General Rapporteur advised setting transparent conditions, using scientifically sound tools to measure the transition, and assessing compatibility with competition rules through an analysis matrix. He also emphasized the importance of farmers benefiting from monetizing their agro-ecological data.

The Autorité de la concurrence has today published informal guidance in the area of sustainability, provided under the notice adopted on 27 May 2024.
An association, presenting itself as a trusted third party in the agro-ecological transition of agricultural holdings in France, consulted the General Rapporteur on the creation of a system for the collective financing of the additional costs and risks associated with the agro-ecological transition of agricultural holdings.
The General Rapporteur found the request to be admissible and that informal guidance could be provided given the importance of the transition for the agricultural sector, despite several aspects of the project still being under development.
In the letter sent to the requester, the General Rapporteur highlighted, in particular, the need to set transparent, objective and non-discriminatory conditions for participating in the project, unless otherwise justified. He also insisted on the need to use (i) scientifically sound tools to measure the transition of an agricultural holding and identify financing needs and (ii) a third party to collect, aggregate and anonymise the commercially sensitive data needed to implement the project.
In addition, the General Rapporteur outlined the analysis matrix to be used by project stakeholders to assess compatibility with competition rules, for the aspects of the project for which sufficient information was not available and, in particular, for the aspects relating to yield reduction and the payment of a premium by downstream players.
Lastly, the General Rapporteur recalled that farmers should be able to benefit from the monetisation of their agro-ecological data, in particular by downstream players.

Press release of 5 February 2025
Sustainability: the Autorité de la concurrence publishes informal guidance on the creation of a system for the collective financing of the additional costs and risks associated with the agro-ecological transition

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Purpose
The Autorité de la concurrence has published informal guidance on sustainability, specifically regarding the creation of a system for collective financing of additional costs and risks associated with agro-ecological transition in agricultural holdings. This guidance aims to provide clarity on competition rules and regulations in the context of sustainable agriculture practices.

Effects on Industry
The publication of this informal guidance is expected to have a significant impact on the agricultural sector, particularly in France. It may influence how farmers and agricultural companies approach agro-ecological transition, potentially leading to increased adoption of sustainable practices. The guidance also sets expectations for transparency, objectivity, and non-discrimination in collective financing projects, which may affect industry-wide standards.

Relevant Stakeholders
The primary stakeholders affected by this update are:

  • Agricultural holdings and farmers
  • Associations promoting agro-ecological transition
  • Companies involved in the agricultural sector
  • Downstream players (those purchasing produce from farmers)

These entities will need to consider the implications of the informal guidance on their business practices, particularly regarding data monetization and competition rules.

Next Steps
To comply with or respond to this update, relevant stakeholders should:

  • Review and understand the requirements for transparency, objectivity, and non-discrimination in collective financing projects
  • Ensure compliance with the analysis matrix provided by the Autorité de la concurrence
  • Consider how to implement scientifically sound tools for measuring agro-ecological transition and identifying financing needs

By taking these steps, stakeholders can position themselves for success in the context of sustainable agriculture practices.

Any Other Relevant Information
The publication of this informal guidance marks a significant development in the Autorité de la concurrence’s approach to competition rules in the agricultural sector. It reflects the importance of sustainability and agro-ecological transition in France and may serve as a model for other countries or industries.

French Competition Authority

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