Competition
Non-competition clauses: specific prohibition and framework regulations
By Yasmine EDDAM30 June 2025The non-competition clause is a well-known contractual mechanism designed to protect a company's interests by limiting the freedom of a former partner, employee or co-contractor, to compete with it. While most practitioners are familiar with the general conditions and limits governing the validity of these clauses, one aspect that is often underestimated is the existence of specific regulations in addition to ordinary law. In certain areas, the legislator has intervened to prohibit these clauses outright or to regulate them very strictly. Navigating between these general and special rules is a complex exercise in which the assistance of a competent competition lawyer can prove decisive. The purpose of this article is to provide details of these derogations, which form an essential part of the analysis of the non-competition obligation in companies. The principle of specific non-competition provisions Before examining the specific cases, it is necessary to...
Validity of the non-competition clause under competition law (cartels, abuse, concentrations)
Competition, Commercial, Business and Competition LawThe non-competition clause is a well-known contractual mechanism, often associated with employment law or business transfers. However, its analysis does not stop at mere contractual validity; it must also be scrutinised under the microscope of competition law, which aims to...Competition law governing motor vehicle distribution: a focus on the after-sales sector
Competition, Commercial, Business and Competition LawThe motor vehicle distribution sector has long been subject to a special legal framework under competition law. The complexity of its networks and the interdependence between the sale of new vehicles and the aftersales market have justified the introduction of specific rules, distinct from the...Case law on franchise agreements in competition law
Competition, Commercial, Business and Competition LawThe franchise contract is a complex contractual structure at the crossroads of distribution law and competition law. For businesses, it represents a powerful lever for development, but its implementation can expose them to significant legal risks if it is not properly mastered. The question...Case law on selective distribution agreements in competition law
Competition, Commercial, Business and Competition LawSetting up a selective distribution network allows a supplier to choose its resellers on the basis of defined criteria, in order to preserve its brand image and ensure quality marketing. This mechanism, which is common for luxury, high-tech and cosmetic products, is also used for...Case law on exclusive distribution agreements in competition law
Competition, Commercial, Business and Competition LawDistribution agreements, and more specifically exclusivity clauses, are at the heart of many commercial strategies. They enable a supplier to organise the marketing of its products and ensure an effective presence on a market. However, these contracts are closely watched by the competition authorities,...The relationship between EU and national competition law
Competition, Commercial, Business and Competition LawWhen a company operates in the French market, it enters a dense regulatory environment where several layers of rules coexist. In competition law, this reality is particularly tangible. Companies are subject to both national law, mainly enshrined in the French Competition Code, and competition law, which...Regulation (EU) 2022/720 on vertical restraints: deciphering and implications
Competition, Commercial, Business and Competition LawConcluding a distribution agreement is a fundamental step in the life of a company, but drafting it can be fraught with pitfalls. The wrong clause can have serious consequences in terms of competition law. Regulation (EU) 2022/720, which came into force on 1 June 2022, redefines in detail the...Vertical restraints: a complete guide to competition law and distribution agreements
Competition, Commercial, Business and Competition LawDistribution, franchising and supply agreements are at the heart of many companies' strategies. However, these so-called 'vertical' contracts may contain clauses which, without careful analysis, could come into conflict with competition law. Far from being simple contractual documents, they define the terms and conditions...Collective dominance: criteria and evidence in competition law
Competition, Commercial, Business and Competition LawWhile competition law often focuses on the actions of a single hegemonic company, there is another form of market power that is more complex to grasp: collective dominance. This situation arises when a number of companies, although legally independent, are able to adopt a single line of action...Scope of the non-competition obligation: subjects, activities and modes of exercise
Competition, Commercial, Business and Competition LawAn ill-defined non-competition clause is a source of costly disputes. Its scope, i.e. who it binds and what activities it prohibits, determines its real effectiveness. This concept is much more subtle than a simple limitation in time and space. While the complete guide to the obligation...Non-competition clause in transfers: business and civil clientele
Competition, Commercial, Business and Competition LawBuying a business or taking over a professional clientele is a major investment for any entrepreneur. Over and above the premises and equipment, it is the customer base, the fruit of years of work, that constitutes the real value of the transaction. It is therefore natural to want to protect this asset against competition...Non-performance of the non-competition obligation: what are the legal sanctions and remedies?
Competition, Commercial, Business and Competition LawBreaching a non-competition obligation is never a trivial matter. Whether you are the head of a company, the seller of a business or a partner, the undertaking not to compete with a partner or a successor is a substantial part of the contractual balance. When it is breached, the damage may be immediate and lasting, or it may be the result of...Sources of the non-competition obligation: deciphering commercial contracts
Competition, Commercial, Business and Competition LawThe non-competition obligation is a central concept in business law, often seen as a necessary evil to protect the value of a business or a customer base. However, its application is far from uniform. Depending on the nature of the contract, it may be a matter of course imposed by law, or it may be...Validity of non-competition clauses: conditions and limits in business law
Competition, Commercial, Business and Competition LawThe non-competition clause is a powerful contractual instrument, frequently used in business life, whether at the time of the transfer of a business, in a shareholders' agreement or in a distribution contract. Its purpose is to protect a creditor against competition from its debtor.The non-competition obligation in commercial law: a complete guide for businesses
Competition, Commercial, Business and Competition LawEntrepreneurial freedom is not absolute; its limits lie where contractual commitments and the legitimate protection of economic interests begin. The non-competition obligation is one of these fundamental limits in commercial law. Often perceived as a constraint, it is in fact an essential tool for securing the business...Competition law on the Internet: the major challenges for your company
Competition, Commercial, Business and Competition LawThe Internet has revolutionised business models, opened up markets and facilitated access to a wealth of information and services. For businesses, it is a powerful lever for growth and innovation. But this digital revolution also brings with it new legal challenges, particularly in terms of competition and competition law.Abuse of a dominant position on the Internet: identifying and avoiding the pitfalls
Competition, Commercial, Business and Competition LawHaving a large market share, or even a dominant position in a digital market, is not in itself a breach of competition law. It is often the reward for commercial success, innovation or judicious investment. What is prohibited, however, is the abuse of this position to restrict...Cartels and vertical restraints on the Internet: what you need to know
Competition, Commercial, Business and Competition LawCompanies are constantly entering into agreements to organise their activities: supply contracts, distribution agreements, technological partnerships, etc. These practices, which are at the heart of freedom of competition, can nevertheless, although most of these collaborations are beneficial and legitimate, cross the yellow line and fall under the...Internet and e-commerce: how do you define the relevant market?
Competition, Commercial, Business and Competition LawDetermining the exact contours of the "relevant market" is a fundamental step in competition law and the principles of unfair competition. It is in this context that we assess whether a practice restricts competition or whether a company holds a dominant position. The exercise, already delicate...Taking action against unfair competition: what penalties and procedures?
Competition, Commercial, Business and Competition LawYou have identified unfair competition by a rival and you have gathered sufficient evidence. The question now is: what can you do about it? What steps can you take to put a stop to these practices and obtain compensation? To do this,...
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