Belgian Competition Authority Issues Guidance on Sustainability Agreements & Competition Law

Key Takeaways

• New Guidance Published: The Belgian Competition Authority has issued guidelines explaining how sustainability agreements will be assessed under competition law and how businesses can pursue sustainability objectives without breaching competition rules.
• Low-Risk Agreements Identified: The guidance highlights categories of sustainability agreements that are unlikely to restrict competition and provides direction on establishing common sustainability standards.
• Exemptions Remain Available: Companies may still be able to pursue certain sustainability initiatives that restrict competition if they satisfy the conditions necessary to qualify for an exemption under competition law.
• Agricultural Sector Receives Dedicated Treatment: The guidelines clarify how agricultural businesses can benefit from exemptions under Article 210bis of the EU Common Market Organisation Regulation when pursuing environmental, pesticide reduction, and animal welfare objectives.
• Greater Legal Certainty Offered: The Belgian Competition Authority outlines avenues for businesses to obtain additional guidance and reassurance regarding the competition law compliance of proposed sustainability agreements.

Deep Dive

The Belgian Competition Authority (BCA) has published new guidelines aimed at helping companies pursue sustainability objectives through collaborative initiatives without running afoul of competition law. The guidance provides businesses with a framework for assessing whether sustainability-related cooperation agreements comply with competition rules and outlines circumstances under which certain arrangements may qualify for exemptions.

The publication comes as companies across Europe face growing pressure from regulators, investors, and stakeholders to address environmental and social challenges while navigating competition laws that can limit coordination between market participants.

The first section of the guidelines establishes the general principles that apply when assessing sustainability agreements under competition law. The BCA identifies categories of sustainability agreements that are unlikely to restrict competition and therefore pose limited antitrust concerns. The guidance also explains the conditions that must be met when companies work together to establish common sustainability standards.

In addition, the authority outlines situations in which sustainability agreements that may restrict competition could nonetheless qualify for an exemption under competition law. To assist businesses in evaluating potential risks and structuring joint initiatives, the guidelines include a series of practical illustrations.

Special Focus on Agriculture and Environmental Goals

The second section focuses on sustainability agreements in the agricultural sector, an area that has received increased attention from European policymakers as environmental and sustainability objectives become more deeply integrated into agricultural policy.

According to the BCA, this portion of the guidance clarifies the circumstances under which companies may benefit from an exemption under Article 210bis of the European Union's Common Market Organisation (CMO) Regulation. The provision is intended to facilitate cooperation that supports environmental objectives, reduces the use of pesticides, and improves animal health and welfare.

The authority said the guidance is designed in part to support agricultural actors seeking to advance sustainability goals while remaining compliant with applicable competition rules.

More Routes to Legal Certainty

The final section addresses the mechanisms available to companies seeking greater legal certainty regarding the compatibility of their sustainability agreements with competition law. Among the options outlined is the possibility of seeking guidance directly from the BCA.

By publishing the guidelines, the authority aims to provide businesses with greater clarity on how competition law applies to sustainability-related cooperation and to encourage the development of initiatives that contribute to environmental and social objectives while respecting competitive market principles.

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