LEGAL PRACTICE : COMPETITION LAW - EFFICIENT COMPETITION - CELL PHONE ACTIVITIES - POWERFUL COMPETITOR - ADVANTAGE - INCREASE OF THE VALUE ADDED TAX - STRATEGY

Strategic use of competition law: The "Bouygues Telecom VAT" case

Competition law aims at securing the existence of an efficient competition on the market. However, if adequately used, that competition law can also offer a relevant advantage to companies facing a powerful competitor. In France, Bouygues Telecom’s behavior when the value added tax raised in 2011 for cell phone activities is a good example of this tendency towards the strategic use of competition law by weak parties.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. "The price of your mobile package is increasing due to the rise in VAT? Then you are no longer committed. React, don't suffer. Join Bouygues Telecom" [1]. With this clever advertising message, the mobile phone operator Bouygues Telecom was doubling its efforts. At the same time, it was implementing an effective legal strategy and diverting a significant proportion of its competitors' customers to its own benefit. Competition law prohibits agreements that restrict competition and the abuse by an undertaking or group of undertakings of their potential position of strength on the market to the detriment of their competitors. The aim is for the public

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Norman Neyrinck, Olivier Beddeleem, Strategic use of competition law: The "Bouygues Telecom VAT" case, September 2011, Concurrences N° 3-2011, Art. N° 37130, www.concurrences.com

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