The Dutch Court holds that a 5-year non-compete clause is disproportional in view of its goal and constitutes a restriction by object (Heijmans beton / Nederveen)

In this case, the Court of First Instance of ‘s-Hertogenbosch (Rechtbank ‘s-Hertogenbosch) holds that a non-compete clause of 5 years is disproportional in view of its goal and constitutes a restriction by object. However, the Court did not have enough information in order to determine whether the agreement had an appreciable impact on trade. Heijmans is a trust consisting of several companies engaged in real estate development and construction. On 10 March 1999, Heijmans acquired all the shares in the capital of the Nederveen-companies, of which the defendant was shareholder and employee. The purchase agreement contained a non-compete clause, according to which it was forbidden for the vendor

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Authors

  • European Commission - DG HR (Brussels)
  • European Court of Justice (Luxembourg)

Quotation

Tristan Baumé, Sally Janssen, The Dutch Court holds that a 5-year non-compete clause is disproportional in view of its goal and constitutes a restriction by object (Heijmans beton / Nederveen), 28 March 2007, e-Competitions March 2007, Art. N° 13729

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