The European Court of Justice provides further guidance on long-term exclusive purchase and non-compete obligations (Estación de Servicio Pozuelo v Galp Energía España)

On 4 December 2014, the European Court of Justice (the “ECJ”) issued an order addressing two preliminary questions from the Spanish Supreme Court concerning an exclusive purchase obligation, which presumably prevented the party bound by the exclusivity from purchasing the products of competing suppliers and was, therefore, equivalent to a non-compete obligation. This exclusivity obligation was agreed in 1998 between the fuel supplier Galp and the service station operator Pozuelo 4 and applied to the purchase of motor vehicle and other fuels by Pozuelo 4 for a period of, it seemed to the ECJ, 30 years. The exclusivity obligation formed part of a broader arrangement between the parties, which involved Pozuelo 4 granting certain property rights in land it owned to Galp for a fixed period

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  • Van Bael & Bellis (Brussels)

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Richard Burton, The European Court of Justice provides further guidance on long-term exclusive purchase and non-compete obligations (Estación de Servicio Pozuelo v Galp Energía España), 4 December 2014, e-Competitions Bulletin December 2014, Art. N° 71189

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