The French Supreme Court holds that low-price practice cannot be sanctioned on the basis of tort law if it does not fall under competition provisions (Usines Merger / Giat Industries)

In a judgement delivered on December, 6th 2005, the commercial Chamber of the French Supreme Court ruled on the relationship between competition provisions and unfair trading provisions on the one hand and tort law provisions on the other hand. The issue at stake concerned the practice of low prices. Usines Merger complained before the Versailles Commercial Court of first instance that Giat Industries, its holding Gitech and subsidiary Foc Transmission were to be held liable for anticompetitive practices, abuse of dominant position and unfair trading practices on a specific engine automotive market (speed reducers) under the basis of Articles L 420-1