*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. 1. Adopted on 1 July 1996, the so-called Galland law on fair and balanced commercial relations introduced into Title IV of the former ordinance of 1 December 1986 a provision punishing the abrupt termination of established [1]commercial relations. A reading of the parliamentary proceedings at the time leaves no doubt as to the initial purpose of the mechanism [2]. The context of the 1990s is that of a now very significant imbalance between producers and major distributors. The barriers to entry to the mass distribution market set up by the 1973 [3] Royer Act had ended up favouring market structures that confronted many product suppliers with an ever
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ARTICLES : FRENCH RESTRICTIVE PRACTICES LAW - SUDDEN BREAK OF BUSINESS RELATIONSHIPS - GALLAND ACT - LARGE RETAIL DISTRIBUTION - CASE LAW - APPLICATION FIELD OF THE PROVISION - FREEDOM OF COMPETITION - ARTICLE L. 442-6, I, 5° C. COM
Misappropriation of restrictive practices regulation in French law: The Article L. 442-6, I, 5° C. com. case
The prohibition of sudden break of established business relationships, as introduced by the 1996 Galland Act, was intended to correct the imbalance provoked by the purchasing power of the large retail distribution. The case law however considerably widened the field of application of this provision and endowed it with attractives rules for the victims. These has led to growing litigation and potential perverse effects such as stiffening of companies business relationships, or, on the other hand, precarious relationships, contrary to the requirements of freedom of competition and economic progress.
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