The German Federal Court of Justice holds that the prohibition to fix prices regarding contracts with third parties is applicable to the relationship between franchisor and franchisee at least in the event that the franchisee himself bears the economic risk of his franchising business (Preisbindung durch Franchisenehmer)

Description of the impugned case The case deals with indirect RPM in the framework of a franchising system in which the franchisor who operates several own branches, advertises for certain prices without however limiting the indications of prices to his own branches or pointing out their non-binding character for the franchisees. The BGH holds that thereby the franchisor infringes the prohibition to circumvent the

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Daniela Seeliger, The German Federal Court of Justice holds that the prohibition to fix prices regarding contracts with third parties is applicable to the relationship between franchisor and franchisee at least in the event that the franchisee himself bears the economic risk of his franchising business (Preisbindung durch Franchisenehmer), 2 February 1999, e-Competitions Bulletin Judicial review, Art. N° 31722

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