A Dutch Court rules on the anticompetitive effects of an obligation to offer a supermarket for sale in case of termination of a franchise agreement in the large retail distribution sector (Prisma)

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Reference

Court of Appeal of Leeuwarden (Gerechtshof Leeuwarden), V.O.F. and partners v. Prisma Vastgoed B.V. / Prisma Food Retail B.V., Case 0600049 LJN: BB8288, 7 November 2007 (German)

The present case was concerned with the restrictive effects, under competition law, of contractual conditions surrounding the ending of a franchise agreement in the supermarket sector. The facts of the case were the following. In 1989, Prisma, the legal successor of Flevozoom Vastgoed B.V., gave a supermarket to rent to the applicant. The lease agreement provided for an option to purchase the supermarket in favour of the applicant as of 30 April 2001. It was further agreed that if the applicant was to exercise its option and, consequently, purchase the supermarket, it would be bound by a franchise agreement with Prisma, according to which it had to respect a given supermarket formula. However, in case the applicant wanted to end this franchise agreement, he would be obliged to offer

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Authors

  • European Commission - DG COMP (Brussels)
    Belgium 46 contributions 199074 visits
  • European Court of Justice (Luxembourg)
    Luxembourg 23 contributions 87155 visits

Quotation

Tristan Baumé, Sally Janssen, A Dutch Court rules on the anticompetitive effects of an obligation to offer a supermarket for sale in case of termination of a franchise agreement in the large retail distribution sector (Prisma), 7 November 2007, e-Competitions Franchising, Art. N° 15166

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