The Paris Court of Appeals confirms that a supplier heading a purely qualitative selective distribution network can refuse a distributor meeting all the network’s selection criteria if the refusal has no anticompetitive object or effect (Mazda / Palau)

In its Mazda ruling of 23 January 2019, the Court of Appeals ("Cour d'Appel") of Paris confirms a developing French case law under which a supplier heading a purely qualitative selective distribution network can refuse to authorize a distributor meeting all the network’s selection criteria, provided that the refusal has no anticompetitive object or effect. Unfortunately, it leaves open the question as to whether this case law applies only to the authorization renewal or expends to its initial granting. On 15 December 2003, the French company Automobiles Palau (hereafter “Palau”) executed two agreements with the French company Mazda Automobiles France (hereafter “Mazda”) under which the former was appointed by the latter to distribute new Mazda cars and provide after-sale services in

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  • Delcade Avocats & Solicitors (Paris)

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Jeremy Bernard, The Paris Court of Appeals confirms that a supplier heading a purely qualitative selective distribution network can refuse a distributor meeting all the network’s selection criteria if the refusal has no anticompetitive object or effect (Mazda / Palau), 23 January 2019, e-Competitions Bulletin April 2019, Art. N° 89907

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