The Swedish state has agreed to pay SEK 1,238,406 to Shahram Soltani’s company after the Swedish Food Agency’s ban on his Gemla business was found unlawful. The settlement gives the dispute a practical consequence: correcting an unlawful regulatory decision can also require compensation for the business damage it caused.
Soltani began making what he described as traditional Persian wine in Gemla, outside Växjö, in 2022. In October 2023, the Swedish Food Agency prohibited the operation. SVT reported that the agency said the products could not be called wine, or anything else, under EU labelling rules, and therefore concluded that the business could not continue.
Soltani appealed with support from the Centre for Justice. A review by the administrative court later found the Food Agency’s decision unlawful, according to SVT. That finding matters beyond permission to sell the product: it is the basis for treating the economic effects of the ban as a separate issue.
Soltani initially received a rejection after seeking compensation from the Chancellor of Justice. Following a further process, the parties reached a settlement. Under it, the state is to pay a total of SEK 1,238,406 to the company within four weeks, SVT reported.
The agreement is not a wholesale rejection of EU labelling rules or food regulation. Product information and regulatory supervision serve legitimate purposes. But where an authority’s action lacks legal support, removing the decision later may not address the commercial loss accumulated while it was in force. This settlement puts a monetary figure on that consequence in Soltani’s case.
The SVT report does not state how the amount was calculated, whether the agreement resolves every remaining claim, or how the Food Agency views the settlement. Those limits matter when assigning broader responsibility. The development itself is clear: the court’s legal correction has now been followed by a financial settlement.
Sources
- SVT Nyheter · Source date: 2026-11-11
Independent editorial content. WUA is not affiliated with any political party. 2026-11-11