Reversed auctions - French Law of August 2, 2005 - Automatic voidance - International relations - Lack of harmonization - Circumvention of law

Reversed auctions: Implementation of French Law in the international relations

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The Law of August 2, 2005 provides France with a binding regulation related to reversed auctions. Some provisions are very specific: automatic voidance designed to penalize some kinds of failures, twofold increase of the notice period when the selection made leads to the breaking off of an established trade relationship and, most of all, prohibition of reversed auctions for some agricultural products. A disaffection of interest towards these measures could appear in international relations. The risk is all the more high as the lack of harmonization of national laws and the fact that it is easy to relocate auctions (especially when they are electronic) could easily enable the circumventing of French law.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. 1. The practice of reverse auctions is characterized by the competition, via a marketplace, of several suppliers invited to bid downwards. Generally, the bids are compared in real time on a website. 2. The process allows buyers to lower the price while simultaneously reducing the negotiation time. It can increase competition between suppliers and transparency in inter-professional relations. However, it raises concerns about the reduction of margins, lower quality and innovation and the abuses to which it could give rise (possible discrimination against participants or price agreements, vices of consent encouraged by the "auction fire", "hare" practices,

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