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Reforms: The French Parliament adopts the “DDADUE” and “ASAP” laws on unfair commercial practicesYour search returned 166 results Significant imbalance
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We won’t even pretend to be surprised anymore. Reforms of the law of commercial relations are being carried out at great speed without having had time to direct the previous ones and without always measuring their interest (on this phenomenon, G. Canivet, "L’histoire sans fin fin des lois (...)
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Significant imbalance: The Paris Court of Appeal finds that end of year rebates based on pre-sales are unbalanced after rejecting a claim based on an alleged abuse of economic dependence (Isocalor / Dalkia)Since 2006, Dalkia has had a commercial relationship with Isocalor Energie, a company specialising in HVAC engineering and thermal insulation. In 2017, revenue was reduced and Isocalor brought an action against Dalkia for abusively exploiting a situation of economic dependence, partially (...) -
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Distribution, competition and unfair practices #2 : Trade negotiations, Significant imbalance & Closing discussion2nd Webinar of the « 1st Distribution, competition & restrictive practices Conference » organised by Concurrences, in partnership with Fidal. Panel with Pierre Chambu (Chef de service de la protection des consommateurs et de la régulation des marchés, DGCCRF), Anne-Sophie Choné-Grimaldi (...) -
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Disproportionate advantages: The Paris Court of Appeal refuses to sanction a benefit with no counterpart in the absence of any evidence of a submission (OC Résidence / Ministre de l’Économie)Despite the free negotiability of prices resulting from Article L. 410-2 of the French Commercial Code and reaffirmed by the Economic Modernization Act of 4 August 2008, France has gradually equipped itself (in Title IV of Book IV of the Commercial Code) with a system for monitoring (...) -
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Abusive practices: The Paris Court of appeal upheld the avoidance of clauses by the victim and enlightens the previous regulation by the new regulation (Institut de recherche biologique / La Poste)Facts The company Institut de Recherche Biologique (hereafter IRB) was linked with the company La Poste (hereafter La Poste) by a " Colissimo Entreprise " contract, the purpose of which was to take charge of, route and distribute parcels to its customers. This contract included the General (...) -
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Significant imbalance: The Paris Commercial Court analyses a franchising contract in the fast food sector regarding the « significant imbalance in the parties’ rights and obligations » pursuant to former article L. 442-6, I., 2° of the Commercial code (new L. 442-1, I., 2°) (DGCCRF / Subway)Facts. In a sector, that of franchising, where the law on anti-competitive practices recognises the legality of restrictive clauses intended to maintain the common identity and reputation of the network, the law on practices restricting competition considers as suspect the common contractual (...) -
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Significant imbalance: The Paris Court of Appeal refuses to sanction the significant imbalance between the rights and obligations of the parties in the absence of any evidence of a submission (Davyco / ITM Alimentaire International)Faits. Un fournisseur spécialisé dans la confection d’articles de bonneterie et de sous-vêtements fabriqués en Asie conclut plusieurs contrats avec une centrale d’achat à partir de 2001. Après avoir constaté une baisse significative des commandes à compter de l’année 2011 consécutive à la mise en place (...) -
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Supplier-distributor relationships tested in the Covid-19 epidemic (Webinar - April 21, 2020)The health crisis and its consequences have had a direct impact on the trade agreements that had just been signed for the year 2020 between distributors and the food companies that supply them. This situation has led suppliers to think about the different legal mechanisms that could be (...) -
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Specialized courts: The Paris Tribunal of Commerce as specialized jurisdiction, declines its jurisdiction due to a jurisdiction clause in favour of the Nanterre’s Tribunal of Commerce, despite arguments of restrictive practices (Canal Plus / Technicolor Delivery Technologies)Facts. Following a call for tenders, Canal+ Group (hereinafter "Canal") selected Technicolor Delivery Technologies (hereinafter "Technicolor") in December 2016 as the supplier of its new "G9" set-top boxes. These two companies signed a letter of intent setting out the terms and conditions for (...) -
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The Belgian Competition Authority publishes a royal decree which incorporates the ban on abuse of economic dependency into the code of economic lawBackground A Royal Decree amending the Belgian Code of Economic Law with regard to the prohibition of abuses of economic dependence was published in the Official Journal of Belgium on 12 August 2020. This Royal decree confirms the competence of the Belgian Competition Authority ("BCA") to (...) -
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Significant imbalance: The French Supreme Court affirms for the first time that the provisions of the former article L. 442-6 C. com. constitute mandatory rules (Expedia)The reader will no doubt recall the judgment of the International Chamber of the Paris Court of Appeal dated June 3, 2020, which we reported in the previous issue of this column (CA Paris, ch. com., June 3, 2020, No. 19/03758, Concurrences 3-2020, obs. F. Buy). In response to the question (...) -
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Significant imbalance: The French Supreme Court confirms the nullity of the parity clauses and the last available room in the participation contracts for a property offered by the platform to hoteliers, as contravening the prohibition of clauses providing for automatic alignment with the conditions offered to competitors, but refuses to regard this as a significant imbalance (Expedia)In a much-awaited decision, the Court of Cassation ruled in the Expédia online hotel reservation platform case, and in particular on the various points raised by the Paris Court of Appeal’s decision, which had annulled the parity clauses and the last available room in a didactic decision that was (...) -
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Commercial agency: The Orleans Court of Appeal considers the clause instituting a trial period to be lawful even though the parties had already collaborated together and evaluates the amount of the termination indemnity by taking into account the duration of this previous collaboration (Villa / Fadin)It is now known that the commercial agency contract may include a clause under the terms of which the agent must serve a trial period and that he is entitled to payment of the termination indemnity provided for in Article L. 134-12 of the Commercial Code, including when the termination of the (...) -
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Significant imbalance: The Paris Court of Appeal gives useful details on the lack of subjection to a significant imbalance (Plaisir Selection Japan / Organisation Intra groupe des achats)1era case - Absence of tender in case of a call for tenders Facts. A company is entrusted by Orange with the connection and maintenance of its telecommunications network. Following a new call for tenders launched by the latter, the former was only selected for one sector and not for the other, (...) -
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Significant imbalance: The Lyon Court of Appeal begins to pave the way for the significant imbalance in civil law (Green Day / Locam ; Totem menuiserie / Brico Dépôt)The concept of significant imbalance, known from special consumer rights and restrictive practices, made a notable entry into ordinary law in article 1171 of the Civil Code. Here then come the first decisions handed down in application of this new rule, conceived, admittedly, as a genuine (...) -
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Food supply chain: The French CEPC addresses certain provisions and practices between producers and first buyers, in the dairy sector, with the view to facilitate the optimization of the commercial opportunities for producersFollowing an initial CEPC opinion on a milk supply contract, previously commented on (see Circular Letter 12/2017, nos. obs.), the Commission once again examined this very specific type of contract, which is fairly symptomatic of the tensions that can exist between the players in the (...) -
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Advantages without counterpart: The Paris Court of Appeal condemns a Referencing Centre to return to a supplier the commissions received from it, failing to demonstrate the reality of the services allegedly rendered (Label G2 / Centragroup Fareva )Facts. In 1998, the supplier Label G2 had entered into a commercial relationship with a customer, the company Excelvision, from which it sold its products. Following the acquisition of Excelvision by the Fareva Group, commercial negotiations were no longer to be conducted between Label G2 and (...) -
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Commercial partner: The French Supreme Court enshrines a broad definition of the partner, victim of a significant imbalance (Locam, Cometik)It is an understatement to say that thejudgment handed down by Chamber 5-4 of the Paris Court of Appeal on 27 September 2017 (No. 16-00671)...had been noticed. Referring to the principle of strict interpretation, to be upheld because of the possibility of high civil fines, this decision showed (...) -
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Significant imbalance: The French Supreme Civil Court signs the early extension of the rule on significant imbalance (Cometik / Parfip France, Locam)Disputes relating to financial leases are among the most abundant under the significant imbalance rule. It is not about to dry up, however, if we are to rely on the decision in the commentary, which deals precisely with these tripartite contractual transactions. The case in point concerns a (...) -
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Significant imbalance: The French Supreme Court decides that pursuant to Article L 442-6 I 2° of the French Commercial Code, a commercial partner is a party with whom the other party commits, or is about to commit, to a commercial relationship without any other condition, either in terms of duration or stability of the commercial relationship (Cometik-Locam)The significant imbalance in its initial wording and in the wording applicable since the Order of 24 April 2019 presupposes a precondition: the submission of one partner by the other contracting party to this imbalance. Indeed, while the Order has removed the reference to the "trading partner", (...) -
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Franchise: The Paris Court of Appeal decides on a melting-pot of rules regarding an exclusivity agreement in franchising (Lara / Casino)A company which had entered into a franchise agreement with Casino for the operation of a Spar store considered itself to be harmed by the pricing policy practised by the latter, and based its argument, but unsuccessfully, on its contractual and tortious liability. Absence of contractual fault (...) -
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Parity clause: The French Competition Authority rejects the referral concerning the tariff parity clauses implemented in the online hotel reservation sector (Expedia / HRS )On 13 December 2019, the Competition Authority issued Decision No 19-D-23 of 10 December 2019 in favour of which it intends to put an end to the affair of tariff parity clauses in force in the online hotel reservation sector. It will be remembered that following a referral in 2013 by several (...) -
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Significant imbalance: The French Supreme Court rules again on the behaviour causing a significant imbalance (ITM International Food )It is an understatement to say that theruling handed down by the Commercial Chamber of the Court of Cassation on 20 November 2019 (No. 18-12.823)This was expected to be the main focus of the Bulletin. According to its letter itself, unchanged on this point by the Order of 24 April 2019, the (...) -
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Significant imbalance: The French Supreme Court considers that in order for a contract clause to be considered as unbalanced, the proof of both the submission and the constraint imposed must first be provided (ITM Alimentaire International)The significant imbalance in its initial wording and in the wording applicable since the Order of 24 April 2019 presupposes a precondition: the submission of one partner by the other contracting party to this imbalance. Indeed, while the Order has removed the reference to the "trading partner", (...) -
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Significant imbalance: The French Supreme Court rules on the burden of proof of the subjection to a significant imbalance in the retail sector (ITM Alimentaire International)The Commercial Chamber has just closed one of the cases initiated following the so-called "Novelli" summons opposing the Minister of Economy to ITM International Food. But contrary to its predecessors who had unanimously condemned the supermarket chains, the Chamber rejects the Minister’s appeal (...) -
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Exclusive distribution: The Paris Court of Appeal rules that the supplier is not required to favour the retraining of the concessionaire and that the provisions of the French Commercial Code relating to price transparency and unfair commercial practices apply to the automotive sector (Monchapet Automobiles and Est Automobiles / Mazda Automobiles)The ruling handed down on 6 November 2019 by the Paris Court of Appeal deserves particular attention in that it illustrates a worrying phenomenon: the increasing pollution of the entire distribution law by provisions that were initially intended for the large-scale distribution sector alone. (...) -
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Exclusive distribution: The Paris Court of Appeal rules that the provisions of the Commercial Code relating to price transparency and unfair commercial practices apply to the automotive distribution sector (Mazda / Montchapet Automobiles)The judgment under comment deserves particular attention in that it illustrates a worrying phenomenon: the increasing pollution of the entire distribution law by provisions which were originally intended for the large-scale distribution sector alone. In the present case, two companies (...) -
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Significant imbalance: The Paris Commercial Court condemns a company dominant in online sales for significant imbalance (Amazon)If the digital giants are in the sights of the authorities, it is undoubtedly on the front of the significant imbalance that they are currently the most active, both in consumer law, where many clauses from Google, Twitter or Facebook have been qualified as abusive (TGI Paris, 12 Feb. 2019, no. (...) -
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Sanction: The Paris Commercial Court partially grants the requests of the Minister of Economy and sentences two companies of the same group operating an international platform to 4 million euros for unbalanced contractual clauses binding one of them to third party sellers (Amazon)After an investigation initiated in 2015, the French Minister of the Economy brought a quasi-tort liability action against three companies of the Amazon Service Europe group, Amazon Payments Europe and Amazon France Services (APE, ASE AND AFS) for practices observed during commercial relations (...) -
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Reorganisation of the Title IV (The reform of the French Commercial Code’s Title IV Book IV - Nanterre, April 4th, 2019)The significant imbalance, a central figure of unfair commercial practices in the order of 24 April 2019? Martine Behar-Touchais Professor, School of Law, University of Paris I Panthéon-Sorbonne Institut de recherche juridique de la Sorbonne (IRJS-André Tunc) Former member, Collège du Conseil (...) -
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Abuse of dominance on the digital market: For a legal interpretation of economic imbalance in the light of oligopoliesThe sentences follow one another without always being the same on either side of the Atlantic. However, it is certain that the digital market is at the heart of the concerns of the European and American authorities. Anti-competitive practices, abusive commercial practices and violations of (...) -
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Sudden break: The Paris Court of appeal rules in a sudden break of established business relationships, on a settlement of accounts between a supplier and one of its ex distributor, and studies the combination of new rules from the French Commercial code (JD Services / Brico Dépot)The Order of 24 April 2019 reforming Title IV reflects a desire on the part of the public authorities to approach the various restrictive practices according to an approach which, although minimalist in terms of the wording of what is prohibited, is nonetheless firm. Not without a somewhat (...) -
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Overseas territories: The French Competition Authority delivers a general diagnosis of competition in the French overseas territories and recommends strengthening its powers (Competition process in the French overseas territories)The French Competition Authority was consulted by the Government on the functioning of competition in the import and distribution of consumer products in the French overseas departments and regions (DROMs), and delivered the results of its analyses on 12 July 2019. As highlighted in the press (...) -
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Significant imbalance: The Paris Court of Appeal imposes a civil fine of €2 million on the French gas turbine leader for significant imbalance in relations with its suppliers (GEEPF)Acknowledging the probative value of 28 anonymous minutes, Chamber 5-4 of the Paris Court of Appeal imposed a civil fine of 2 million euros on the French leader in medium and large gas turbines for power generation because of significant imbalance in relations with its suppliers and ordered it (...) -
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Significant imbalance: The Paris Court of Appeal rules that the general terms and conditions of purchase, which systematically take precedence over the general terms and conditions of sale and impose discount conditions without consideration, can be qualified as a significant imbalance within the meaning of the French Commercial Code (GEEPF)This judgment is very significant because it was handed down in a relationship between a manufacturer and its suppliers and not between a distributor and its supplier. In the present case, GE Energy Product France (GE EPF) is a major manufacturer of medium and large gas turbines which was the (...) -
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Significant imbalance: The Paris Court of Appeal gives useful details on the proof and the sanction of a significant imbalance (GEEPF)The Paris Court of Appeal was seized of an action brought by the Minister based on the significant imbalance created by two clauses imposed by a General Electric subsidiary on its suppliers and subcontractors - a clause providing for the primacy of the GTC over the GCS and a clause setting out (...) -
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Significant imbalance: The Paris Court of Appeal finds itself at prey to the torments of prescription of a claim based on a significant imbalance (Econocom France / Bois & Matériaux)A major player in the distribution of wood and building materials has entered into a so-called "upgradeable" IT equipment rental contract with a specialised company, which is materialised by a contractual package and includes in particular a "technology exchange option" which consists of (...) -
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Franchise: The Paris Court of Appeal rules that the obligation of the franchisee to transmit the file of his customers to the franchisor is not an unfair practice (Déco Club / Carré blanc)The obligation on the distributor to communicate its customer file to the supplier is multiplied in distribution contracts, particularly in franchise agreements, as shown in the judgment under comment. In the present case, a company specialising in the retail trade in furniture and household (...) -
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Franchise: The Paris Court of Appeal considers that the stipulation of a penalty clause providing, in the event of termination of the contract as a result of the wrongful conduct of the franchisee, the payment by the latter of the amount of the annual fee multiplied by the number of years to run until the end of the contract does not create a significant imbalance (Pierre Dulac / Distribution Casino France)Consideration of the balance between the rights and obligations of the parties to a distribution contract is again, this quarter, at the heart of the news. After the introduction, in ordinary contract law, of the sanction of significant imbalance in contracts of adhesion (art. 1171 C. civ.), (...) -
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Significant imbalance: The French Commission on the examination of unfair practices considers that the clause of non-renewal of contract indemnity, stipulated to the benefit of the commissioner, can contravene the article L. 442-6, I, 2° of the French Commercial Code (Commission contract)The CEPC was seized of the question whether "the clause in a sales commission contract requiring the principal alone to pay its commission agent, in the event of non-renewal of the contract, whoever the non-renewer and whatever the cause of such non-renewal, an indemnity of an amount equivalent (...) -
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La réparation des préjudices causés par les pratiques anticoncurrentielles, Rafael AMARO and Jean-François LABORDEThis section selects books on themes related to competition laws and economics. This compilation does not attempt to be exhaustive but rather a survey of themes important in the area. The survey usually covers publication over the last three months after publication of the latest issue of (...) -
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Signficant imbalance: The French Commission on the examination of unfair practices publishes two opinions regarding practices that unreasonably delay the terms of payment and which can be regarded as a significant imbalance (Terms of payment)According to a recent report in the daily newspaper Les Echos ("Les délais de paiement plus longs en France que dans le reste du monde", 10-11 May 2019, p. 3), based on figures from the credit insurer Euler Hermes, payment times for businesses have been extended by two days in France. These (...) -
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Reform: The French government publishes an order amending Title IV of Book IV of the French Commercial Code simplifying the law on unfair commercial practices in France while maintaining a close framework for contractual relationships between professionals, as well as the texts of compliance and consistency (Egalim law)For a complete and detailed study of the reform, read also the proceedings of the conference "The rewriting of Title IV of Book IV of the Commercial Code", organised on 4 April 2019 in Nanterre, under the direction of A.-S. Choné-Grimaldi, Revue ConcurrencesN° 3-2019, www.concurrences.com. (...) -
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Compensation for termination: The French Commission for Examination of Unfair Commercial Practices examines the compliance with the former Article L. 442-6, I, 2 of the French Commercial Code of a compensation due in the event of non-renewal of a commission contract (Commission contract in the pharmaceutical sector)The Commission d’examen des pratiques commerciales (CEPC) was asked to examine a clause contained in a commission contract in the light of the former Article L. 442-6, I, 2° C. com. (which, with Order no. 2019-359 of 24 April 2019, became Article L. 442-1, I, 2° C. com.). The disputed clause (...) -
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Belgium: The Belgian legislator introduces into the economic law code the abuse of economic dependence and sanctions the "manifest imbalance" between the rights and obligations of the parties in B2B relations (Law of 4th April 2019)I am informed (Thank you Mathilde) of the publication in the Moniteur belge dated 24 May 2019 of the law of 4 April 2019. amending the Code of Economic Law with regard to abuse of economic dependence, unfair terms and unfair market practices between companies. There are two main innovations in (...) -
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Business partnership: The French Supreme Court rules that Article L. 442-6 of the French Commercial Code does not apply to the relationship between a lawyer and his law firm (M. E. / Cabinet S.)By the time the reader reads these lines, the judgment under commentary will perhaps no longer be more than an illustration of the Byzantinisms on which article L. 442-6 C. com. has been based for too long. In this case, judges had rejected a lawyer’s claim for damages, directed against the law (...) -
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Significant imbalance: The french Commission for examination of commercial practices gives the directions to save a significant imbalance from sanction (Textiles)In any event, "despite the significant imbalance attached to this set of clauses, it is nevertheless possible for the provider to establish the absence of a significant imbalance in the commercial relationship, in particular by proving that the imbalance is compensated for by other contractual (...) -
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Significant imbalance: The Paris Court of Appeal rules on the subjection of a trading partner to a significant imbalance (Bizcom Europe / Hewlett-Packard France...)This commentary, which focuses on the submission to a significant imbalance, accompanied by some elements relating to the commercial partnership, concentrates on the judgment of 11 January 2019 (1st esp.) in the context of a tendering procedure, but also mentions certain contributions of two (...) -
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Purchase obligation: The Paris Court of Appeal decides that a purchase obligation governing access to a network isn’t a restrictive practice (Centrale des Opticiens, FL2, Opti’bambins / Carte Blanche Partenaire)A health platform whose services are intended for the policyholders of complementary health players (insurers, mutual insurance companies, etc.) has included in the agreement proposed in a call for applications to its healthcare network a new offer called Prysme requiring each optician wishing (...) -
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Significant imbalance: The Constitutional Council rules that price control is not contrary to the Constitution (Interdis, Carrefour hypermarchés, Carrefour administratif France, CSF et Carrefour Proximité France)The decision under comment was particularly eagerly awaited. The Constitutional Council was once again called upon to rule on the constitutionality of Article L. 442-6, I, 2° of the Commercial Code, which penalises the submission of bonds creating a significant imbalance. In an initial decision (...)
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