18 November 2019

Unfair competition: Non-compliance with regulations

The activity of a private car service intermediary (VTC) differs from that of an operator (exploitant) within the meaning of the French Transport Code since the two are not subject to the same obligations, and therefore, in the absence of competition, the unfair competition test for non-compliance with the regulation is not met.
CA Paris, 4 November 2019, LawLex201900001364JBJ

Written agreement: Formal conditions
The supplier may require the distributor to sign the written agreement before 1 December, the date of 1 March being only the latest possible date.
CA Paris, 6 November 2019, LawLex201900001343JBJ

Unfair terms between professionals: Subjection to
A distributor who fails to respond within the time-limit imposed by the supplier to his proposal of a contract and disputes the application of the annual agreement demonstrates that it has bargaining power, thus ruling out the claim of subjection to a significant imbalance, especially when it largely distributes competing brands.
CA Paris, 6 November 2019, LawLex201900001343JBJ

Unfair terms between professionals: Subjection to
A carrier who has negotiated the price of his service and has the option to renegotiate it annually cannot claim that the contract, which is demanding in terms of the level of service required, is imbalanced, insofar as it is responsible for determining how to carry out the service according to the price negotiated.
CA Paris, 7 November 2019, LawLex201900001365JBJ

Sudden termination of established commercial relationship: Partial termination
The supplier, who, after terminating the distribution contract for failure to meet targets, continues to supply the distributor but with a substantial and non-negotiated re-evaluation of its prices not able to be passed on to customers, is guilty of a partial termination of the established commercial relationship.
CA Paris, 6 November 2019, LawLex201900001351JBJ

Sudden termination of established commercial relationship: Length of notice period
The refusal of the supplier to honor orders corresponding to twelve months of trade in the three months’ notice period is not abusive.
CA Paris, 6 November 2019, LawLex201900001344JBJ

Actions available for abuse of dependence: Action in contract or tort
An action in sudden termination of an established commercial relationship between a Portuguese manufacturer and his French client, which is a matter relating to a contract, must, in application of Article 7(I)(b) of EU Regulation No 1215/2012, be brought in the court of the place of delivery of the goods.
CA Paris, 6 November 2019, LawLex201900001339JBJ

Merger control: Power of Competition Authority
There is no Competition Authority provision or guidance stipulating that, for a sanction imposed in matters of merger control, it is required to specify the amount of the fine the perpetrator will face and then state the adjustments made to that amount to take account of the extenuating or aggravating circumstances upheld in light of the conduct of, the duties carried out and the difficulties encountered by the latter.
Council of State, 7 November 2019, LawLex201900001369JBJ

Merger control: Power of Competition Authority
The amount of the fine imposed on the new entity – approximately 0.3% of its consolidated turnover in France for 2017 and 7% of the possible maximum amount – is not disproportionate to the gravity of the infringements committed, its behavior in the implementation of the commitments and its particular situation, and the fact that the sanction is harsher than those imposed by the Competition Authority in other comparable cases for failure to comply with commitments, is irrelevant.
Council of State, 7 November 2019, LawLex201900001369JBJ