Agreement
Can an anti-competitive agreement be justified? Exemptions
By Yasmine EDDAM28 April 2025The prohibition on anti-competitive agreements set out in Article L. 420-1 of the French Commercial Code is a cornerstone of French competition law. Its aim is to ensure that markets function properly for the benefit of businesses and consumers. However, this prohibition is not absolute. The legislator has provided for situations where a practice, although potentially restrictive of competition, may escape sanction. How can a cartel be justified? The key mechanism is exemption, governed mainly by Article L. 420-4 of the French Commercial Code. This article sets out a number of ways in which a restrictive practice can be 'whitewashed', subject to strict conditions. Understanding these exceptions is essential for companies seeking to secure their agreements or assess their risks. This article explores the various cases in which an agreement may be justified. Legal exemption: when the practice is the result of the application of a law The first way out...
The main types of agreement prohibited by competition law
Commercial, business and competition law, CartelsThe aim of competition law is to guarantee fair and balanced competition between economic players. At the heart of this system is article L. 420-1 of the French Commercial Code, which lays down the principle that anti-competitive agreements are prohibited. While this article gives a few examples of prohibited practices, the list is not exhaustive.Cartel by object or by anti-competitive effect: what are the differences?
Commercial, business and competition law, CartelsFrench competition law, like its European counterpart, is based on fundamental pillars designed to ensure healthy and fair competition on the markets. Central among these pillars is the prohibition on anti-competitive agreements, set out in Article L. 420-1 of the French Commercial Code. This...Proving a cartel: how do the authorities investigate and what evidence should be used?
Commercial, business and competition law, CartelsAnti-competitive agreements - agreements or concerted practices between companies aimed at distorting competition - often take place in the shadows. By their very nature, the participants seek discretion in order to escape the vigilance of the authorities and the potentially heavy penalties. However, the Autorité de la concurrence (French competition authority) has the means...What is an anti-competitive agreement under French law?
Commercial, business and competition law, CartelsThe term "cartel" often conjures up images of secret meetings where competitors agree to manipulate the market. While this image is not entirely false, the legal reality is more nuanced. Understanding precisely what is covered by the notion of anti-competitive agreements is essential for any company wishing to operate in compliance with...Anti-competitive agreements: understanding the rules and the risks for your company
Commercial, business and competition law, CartelsCompetition is often described as the engine of the economy. It drives companies to innovate, improve their offerings and offer attractive prices. However, some companies may be tempted to circumvent this competition by entering into secret agreements with their competitors: these are known as anti-competitive agreements....
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