ARTICLE: RESTRICTIVE PRACTICES - COMMERCIAL RELATIONS - FREEDOM OF NEGOCIATION - UNFAIR PRACTICES - CONTRACTUAL DISPUTES

Provisions on restrictive practices in question

In addition to the prohibition of anticompetitive agreements, abuses of dominant positions and the control of anticompetitive mergers, French competition law limits the freedom of negotiation of parties to commercial contracts. The goal of these limitations is to ensure a balance between suppliers and distributors in order to protect small suppliers, small distributors and farmers against the negotiating power of large retail chains. By limiting the freedom of negotiation of parties to commercial contracts, these provisions directly distort and undermine economic competition and the goal of competition law. It is proposed to eliminate these provisions from competition law, to pass a law against unfair practices eliminating the possibility of economic hold-ups by a party against another party to the contract, to accelerate the treatment of contractual disputes and, if it is considered that farmers, small producers and retailers provide a positive externality to society to subsidize them directly rather than to rely on a competition distorting mechanism to ensure their survival.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. 1. Article 17 of Law No. 2018-938, the Law for the balance of trade relations in the agricultural and food sector, authorizes the Government to take by ordinance any measure falling within the scope of the law to amend Title IV of Book IV of the Commercial Code entitled "Transparency, practices restricting competition and other prohibited practices" in order, inter alia, to "reorganize this title and clarify its provisions, in particular by deleting provisions that have become irrelevant and referring, where appropriate, to other codes". The government has initiated a consultation on the changes to be made in this framework. 2. Title IV is part of Book IV

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  • ESSEC Business School (Cergy)

Quotation

Frédéric Jenny, Provisions on restrictive practices in question, February 2019, Concurrences N° 1-2019, Art. N° 89458, www.concurrences.com

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