The Italian Competition Authority opens a proceedings on abuse of economic dependence in a franchise agreements (Benetton)

On November 25, 2020, the Italian Competition Authority (“ICA”) opened an investigation regarding the Benetton Group (“Benetton”) and its suspected abuse of economic dependence pursuant to Sec. 9, para. 3 bis, of Law No 192 of June 18, 1998, in relation to two franchising agreements with identical content concerning the sale of Benetton branded products. The investigation was prompted by a complaint made by a former Benetton franchisee whose business has now ceased, allegedly because of the excessively onerous conditions and financial burdens imposed by the franchisor. According to the ICA, Benetton apparently forced the retailer to implement and maintain a sales structure and a business organization designed around Benetton’s own needs, preventing it from managing its commercial activity

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Auteur

  • Portolano Cavallo (Milan)

Citation

Enzo Marasà, The Italian Competition Authority opens a proceedings on abuse of economic dependence in a franchise agreements (Benetton), 25 novembre 2020, e-Competitions November 2020, Art. N° 100109

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