The EU General Court endorses strict approach to ancillary restraints (Portugal Telecom and Telefónica)

Portugal Telecom and Telefonica cases – Non-compete clauses: General Court endorses strict approach to ancillary restraints Non-compete clauses are standard practice in the context of the acquisition of a business to protect a purchaser’s investment. They guarantee the transfer to the purchaser of the full value of the assets transferred by, for instance, preventing the seller from opening a new business servicing the customers that were transferred to the purchaser. Under certain conditions, non-compete clauses do not fall within the scope of Article 101 TFEU if they are directly related, necessary and proportionate to the implementation of the acquisition. If these conditions are met, the non-compete clause is in principle cleared as part of the merger process. In their appeals,

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  • Van Bael & Bellis (Brussels)

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Richard Burton, The EU General Court endorses strict approach to ancillary restraints (Portugal Telecom and Telefónica), 28 June 2016, e-Competitions Bulletin June 2016, Art. N° 80692

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