CASE COMMENTS: CARTELS - VERTICAL AND HORIZONTAL CARTELS - NON-COMPETITION CLAUSE - ANCILLARY RESTRICTION

Non-competition clause: The Court of Cassation rejects the appeal against the decision of the Paris Court of Appeal confirming the anti-competitive nature of a non-competition clause according to which a company transferring control of a subsidiary undertakes, on the one hand, not to operate on the same market as the transferred subsidiary and, on the other hand, to obtain its supplies exclusively from the latter (Edenred / Kering)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Is the lucrative gift card market finally opening up to full competition? In this decision, the French Supreme Court confirms the removal of one of the last barriers to entry erected by Edenred when it acquired control of a subsidiary, Kadéos, in 2007, which was jointly owned by several retail chains specializing in multi-brand gift cards. Two clauses in the transfer contract were problematic. In order to limit the risk of competition as much as possible, Edenred, which was already active in the gift card market through another subsidiary, had obtained from the transferring companies exclusive rights to supply gift cards to Kadéos for a period of five

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Etienne Thomas, Non-competition clause: The Court of Cassation rejects the appeal against the decision of the Paris Court of Appeal confirming the anti-competitive nature of a non-competition clause according to which a company transferring control of a subsidiary undertakes, on the one hand, not to operate on the same market as the transferred subsidiary and, on the other hand, to obtain its supplies exclusively from the latter (Edenred / Kering), 12 May 2021, Concurrences N° 3-2021, Art. N° 101706, pp. 91-93

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