Antitrust and Competition Law in France

Antitrust and Competition Law in France

Updated on Monday 18th April 2016

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Antitrust-and-Competition-Law-in-France.jpgThe competition and antitrust law in France follows the European Union model and principles regarding unfair competition, abuse of power, dominant companies and company mergers and acquisitions in France.
Companies that fail to observe the regulations for good business practices can face penalties. In order to take the necessary precautions to avoid any competition or antitrust issues while doing business in the country it is advisable to seek the help of a law firm in France.

The competition law in France

The Competition Authority in France is the one in charge with ensuring proper market competitiveness at the same time guaranteeing that the consumers can choose the best price. The Authority evaluates anti-competitive practices and can decide to impose sanctions, fines or make the company change its commercial practices and behavior in the future.
Companies are not allowed to discriminate in business relationships or impose unreasonable commercial conditions. Prices are to be set in such a manner that they are not excessively low or high. Firms must not be prohibited to enter the market because of high prices. The costs of production, processing and marketing must be established in a manner that observes the regulations for competitive prices. Fines are applicable for price-fixing. 
Business sectors can be subject to different regulation practices for competition and antitrust.  Our law firm in France can tell you more about how each business sector is subject to the competition law.

Anti-competitive practices in France

Some of the practices that are considered anti-competitive by French authorities include:
- horizontal and/or vertical agreements in France: those agreements that can prevent, restrict or distort competition by limiting access to a market, making prices higher or lower, limiting investment or technical progress, dividing markets or suppliers and other actions;
- abuse of dominance: excessive use of a dominant position in the French market;
- mergers: no company mergers are allowed for anti-competitive purposes like straightening buying power to put others in a position of economic dependence or for the purpose of lessening the competition on the market.
Our team of lawyers in France can help you observe all the laws and legal practices. 
For other issues related to doing business you may contact our law firm in France.