CASE COMMENTS: DISTRIBUTION – FRANCHISE – ABUSE OF ECONOMIC DEPENDENCE – POST-CONTRACTUAL NON-COMPETITION CLAUSE

Abuse of economic dependence: The Paris Court of Appeal confirms the validity of a franchise agreement in the absence of abuse of economic dependence towards the franchisee but annuls the post-contractual non-competition clause (Casino / Carrefour)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. In a decision handed down on October 3, 2018, the Paris Court of Appeal heard a dispute between a franchisor and its franchisee, an operator of a convenience store, who had terminated its franchise agreement to join a competing food retailer. Nothing could be more banal in reality. However, this decision is of particular interest as it deals with an issue that is little dealt with in the case law, namely the state of economic dependence of franchisees on their franchisor and possible abuse by the latter (cf. nevertheless supra obs. N. E. under Aut. conc., Dec. No. 18-D-22 of 17 Oct. 2018). It also recalls the conditions for the validity of

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Dominique Ferré, Abuse of economic dependence: The Paris Court of Appeal confirms the validity of a franchise agreement in the absence of abuse of economic dependence towards the franchisee but annuls the post-contractual non-competition clause (Casino / Carrefour), 3 October 2018, Concurrences N° 1-2019, Art. N° 89509, pp. 99-100

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