The Paris Court of Appeal finds that non-compete clause in supermarket franchise agreement is anti-competitive (Prodim)

On 6 March 2013, the Paris Court of Appeal ruled that a non-compete clause in a franchise agreement in the food distribution sector infringed competition law, as it was neither necessary nor proportionate for the purpose of protecting the franchisor’s know-how and the reputation of the franchise network. On 18 July 1991, French company Prodim (eventually bought by the Carrefour supermarket group) which had set up a chain of franchised supermarkets under the Shopi brand, entered into a 7-year franchise agreement with

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  • Van Bael & Bellis (Brussels)

Quotation

Andrzej Kmiecik, The Paris Court of Appeal finds that non-compete clause in supermarket franchise agreement is anti-competitive (Prodim), 6 March 2013, e-Competitions Bulletin March 2013, Art. N° 58158

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