COMPETITION • FRENCH LAW • RESTRICTIVE AGREEEMENTS
Prohibiting cross-supplies between distributors in the same network (retrocessions) is inherently restrictive of competition as it limits intra-brand competition. The courts therefore consider that non-retrocession clauses in franchise, exclusive distribution or selective distribution agreements are contrary to Article L. 420-1 of the Commercial Code. Exclusive purchasing clauses that have the same object or effect also fall under the prohibition.
