English > Competition Law > Antitrust Encyclopedia > Anticompetitive practices > Legislation > What is the relevant legislation dealing with anticompetitive practices? What is the main wording?

In this section, anticompetitive practices refer to agreements and concerted practices prohibited by Article L.420-1 Commercial Code, the French equivalent to Article 81 of the EC Treaty. Article L.420-1 prohibits agreements that have the object or potential effect of an appreciable prevention, restriction or distortion of competition in France. Article L. 420-1 Commercial Code reads as follows: “Common actions, agreements, express or tacit undertakings or coalitions, particularly where they are intended to: (i) limit access to the market or the free exercise of competition by others; (ii) prevent price fixing by the free play of the market by artificially encouraging the increase or reduction of prices; (iii) limit or control production, opportunities, investments or technical progress; (iv) share out the markets or sources of supply, shall be prohibited when they are aimed at or may have the effect of preventing, restricting or distorting the free play of competition in a market”. (translation by www.legifrance.gouv.fr). The Article L.420-1 Commercial Code prohibition applies to horizontal agreements (agreements between competitors) and to vertical agreements (agreements between independent entities that operate at different economic levels). The Competition Council takes into account European Commission Regulation 2790/1999 which is applicable to categories of vertical agreements and concerted practices and the European Commission Notice Guidelines on vertical restraints, OJ C 291 of 13 October 2000, pp. 1-44. According to Article L. 420-3 Commercial Code, any “undertaking, agreement or contractual clause infringing” Article L. 420-1 Commercial Code is void (see, similarly for Art. 81.2 EC, for ex. (Juliette Goyer, Lauriane Lépine, A French Court of Appeal annuls a commissioning agreement for violation of Art. 81 EC (SAS Prim’Co ), e-Competitions, Dec. 2007-I). The Competition Council can impose fines upon the infringing party(ies). However, contrary to the courts, the Competition Council can neither declare a contract void, nor grant damages to recover the losses incurred as a result of anticompetitive practices.