France/EU, 2005: Difference between revisions

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'''This page is currently under construction. Please check back in mid-August, 2008.'''
'''Score = 27'''


'''Score = 26'''
'''Governed by:'''
*''EU law:''
:* Articles 81<ref>available from the EC at http://ec.europa.eu/comm/competition/legislation/treaties/ec/art81_en.html</ref> and 82<ref>available from the EC at http://ec.europa.eu/comm/competition/legislation/treaties/ec/art82_en.html</ref> of the EC treaty
:* Regulation 1/2003 of 16 December 2002 <ref> Available at http://ec.europa.eu/comm/competition/antitrust/legislation/legislation.html</ref> and


''Governed by:'' Articles 81 and 82 of the Treaty on European Union, and EU Regulation 1/2003, as well as national legislation.<ref>EU statutes and regulations available online from the European Competition  Network, at http://ec.europa.eu/comm/competition/ecn/documents.html</ref>
*''French Law:''
:*Some French competition law is codified in provisions of the code de la consommation (consumer code).<ref>Available in French at http://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006069565&dateTexte=20080624</ref>
:*The majority is contained in Livre (book) IV of the Code de Commerce.<ref> most recent version of the Code available in French at http://www.legifrance.gouv.fr/affichCode.do?dateTexte=20080624&cidTexte=LEGITEXT000005634379&fastReqId=239729146&fastPos=6&oldAction=rechCodeArticle</ref><ref>Limited English version available at http://195.83.177.9/code/liste.phtml?lang=uk&c=32&r=3094</ref><ref>The French Commercial Code in English 2005, Philip Raworth translator, 2005, Dobbs Ferry, NY, Oceana Publications, Inc.</ref>  
   
   
{| class="wikitable"
{| class="wikitable"
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| Extraterritoriality
| Extraterritoriality
| 1
| 1
| Article L.420-1 extends the scope of the act outside of France in limited circumstances.  
| EU law governs whenever conduct has effects on trade between Member States pursuant to Article 3 of Regulation 1/2003.


|- class="categorydivision"
|- class="categorydivision"
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|Fines
|Fines
| 1
| 1
|Art. L.420-6 allows for fines for violations of competitive practices. Article L.430-8 allows for fines for improper merger.   
|Art. L.420-6 of the Code de Commerce allows for fines for violations of competitive practices. Article L.430-8 allows for fines for improper merger.   


|-
|-
|
|
| Prison Sentences
| Prison Sentences
| 1
| 0
|Art. L.420-6 allows for prison sentences of up to four years for violations of the competition statute.  
| The Code de Commerce does not provide for prison sentences for violations of EU law; however, violations of the ''national'' law can result in prison sentences.  


|-
|-
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| Divestitures
| Divestitures
| 1
| 1
| Are. L.430-8 authorizes divestment in the case of unauthorized mergers.  
| Are. L.430-8 of the Code de Commerce authorizes divestment in the case of unauthorized mergers.  


|- class="categorydivision"
|- class="categorydivision"
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|3rd Party Initiation
|3rd Party Initiation
|1
|1
|L.470-7 lets trade organizations file civil suits for practices affecting their industry.  
|L.470-7 of the Code de Commerce lets trade organizations file civil suits for practices affecting their industry.  


|-
|-
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| Remedies Available to 3rd Parties
| Remedies Available to 3rd Parties
| 1
| 1
| Art. L.442-6 establishes liability for a small set of competition violations. L.470-7 lets trade organizations file civil suits for practices affecting their industry.  
| Private enforcement of Articles 81 and 82 of the EC treaty is mandated and encouraged by the European Commission.<ref>http://ec.europa.eu/comm/competition/antitrust/actionsdamages/files_white_paper/whitepaper_en.pdf</ref>
|-
|-
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| 3rd Party Rights in Proceedings
| 3rd Party Rights in Proceedings
| 1
| 1
| Art. L.463-1, "interested parties" may participate in proceedings.  
| Art. L.463-1 of the Code de Commerce states that "interested parties" may participate in proceedings.  


|- class="categorydivision"
|- class="categorydivision"
| Merger Notification
| Merger Notification<ref>The National Competition Authority will assess mergers under the National Competition Act. If the concentration affects trade between the Member States, the European Commission will assess the merger under Regulation 139/2004. See the coding for the European Commission for those provisions.</ref>
| Voluntary
| Voluntary
| 0
| 0
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| Mandatory
| Mandatory
| 3
| 3
| Art. L.430-2 requires that large companies get government approval before or when they merge.  
| Art. L.430-2 of the Code de Commerce requires that large companies get government approval before or when they merge.  
|-
|-
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| Pre-merger
| Pre-merger
| 2
| 2
| Art. L.430-2 requires that large companies get government approval before or when they merge. However, article L. 430-4 allows companies to merge while awaiting approval under urgent circumstances.  
| Art. L.430-2 of the Code de Commerce requires that large companies get government approval before or when they merge. However, article L. 430-4 allows companies to merge while awaiting approval under urgent circumstances.  
|-
|-
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| Dominance
| Dominance
| 1
| 1
| Art. L.430-6 requires consideration of dominance as part of the decision whether to grant a merger.
| Art. L.430-6 of the Code de Commerce requires consideration of dominance as part of the decision whether to grant a merger.
|-
|-
Line 85: Line 90:
| Restriction of Competition
| Restriction of Competition
| 1
| 1
| Art. L.430-6 requires consideration of the effects on competition as part of the decision whether to grant a merger.
| Art. L.430-6 of the Code de Commerce requires consideration of the effects on competition as part of the decision whether to grant a merger.
|-
|-
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| Public Interest (Pro D)
| Public Interest (Pro D)
| 1
| 1
| Art. L.430-6 requires consideration of public public interest, especially with regard to international competitors, when deciding whether to permit a merger.  
| Art. L.430-6 of the Code de Commerce requires consideration of public public interest, especially with regard to international competitors, when deciding whether to permit a merger.  
|-
|-
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| Limits Access
| Limits Access
| 1
| 1
| Art. L.442-1 (citing Articles 121-35 and 122-1 of the Consumer code) prohibits refusing to sell to consumers. Art. L.420-2 (referencing L.420-1) prohibits limiting production.  
| Article 82(b) of the EC treaty prohibits limiting production.
|-
|-
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| Abusive Acts
| Abusive Acts
| 1
| 1
| Art. L.420-2 prohibits abuse of a dominant position.  
| Article 82 of the EC treaty prohibits abuse of a dominant position.


|-
|-
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| Price Setting
| Price Setting
| 1
| 1
|Art. L.420-2 (referencing L.420-1) prohibits price setting.  
| Article 82(a) of the EC treaty prohibits price setting.


|-
|-
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| Discriminatory Pricing
| Discriminatory Pricing
| 1
| 1
| Art. L.420-2 prohibits discriminatory pricing.  
| Article 82(c) of the EC treaty prohibits discriminatory conditions.
|-
|-
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| Resale Price Maintenance
| Resale Price Maintenance
| 1
| 1
| Art. L.442-5 prohibits resale price maintenance.  
| Article 82(a) of the EC treaty prohibits resale price maintenance.
|-
|-
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| Obstacles to Entry
| Obstacles to Entry
| 1
| 1
| Art. L.420-2 (referencing L.420-1)prohibits creating obstacles to entry.  
| Article 82 of the EC treaty prohibits using predatory pricing to  drive competitors from the market<ref>See the EC antitrust overview, at http://ec.europa.eu/comm/competition/antitrust/overview_en.html</ref>
|-
|-
|  
|  
| Efficiency Defense
| Efficiency Defense
| 1
| 0
| Art. L.420-4 allows otherwise prohibited practices if they promote more efficient practices, especially for small and medium sized companies.
|  
|- class="categorydivision"
|- class="categorydivision"
Line 158: Line 162:
| Price Fixing
| Price Fixing
| 1
| 1
| Art. L.420-1 bans price fixing.
| Article 81(1)(a) of the EC treaty prohibits price fixing.
|-
|-
|  
|  
| Tying
| Tying
| 1  
| 1
| Articles L.420-2 and L.442-1 ban tying.  
| Article 81(1)(e) of the EC treaty prohibits tying.
|-
|-
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| Market Division
| Market Division
| 1
| 1
| Art. L.464-6-2 treats market division as a blatant anticompetitive restriction.  
| Article 81 of the EC treaty prohibits market division<ref>Although the wording of the treaty seems to apply to market sharing, the EC also considers market division illegal. See the EU press release at http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/07/29&format=HTML&aged=0&language=EN&guiLanguage=en</ref>
 
|-
|-
|  
|  
| Output Restraint
| Output Restraint
|1  
| 1
|Art. L.420-1(3) bans output restraint.  
| Article 81(1)(b)of the EC treaty prohibits limiting production.
|-
|-
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| Market Sharing
| Market Sharing
| 1
| 1
| Art. L.420-1(4) bans market sharing.  
| Article 81(1)(c)of the EC treaty prohibits market sharing.
|-
|-
|  
|  
| Eliminating Competitors
| Eliminating Competitors
| 0
| 1
|  
| Article 81(1) of the EC treaty prohibits agreements that have the purpose or effect of eliminating competition.
|-
|-
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| Collusive Tendering/Bid-Rigging
| Collusive Tendering/Bid-Rigging
| 1
| 1
| Art. L.420-1(4) bans market sharing. French authorities have, on at least one occasion, treated bid rigging as market sharing.<ref>See the Drapo Software case, details from the French Competition Council, at http://www.conseil-concurrence.fr/user/standard.php?id_rub=185&id_article=542</ref>
| Article 81 of the EC treaty prohibits bid-rigging.<ref>Although not explicitly stated in the statute, bid-rigging is considered anti-competitive behavior. See the case involving gas insulated switchgear, at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/80&format=HTML&aged=0&language=EN&guiLanguage=en</ref>
|-
|-
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| Supply Refusal
| Supply Refusal
| 1
| 1
| Art. L.420-2 prohibits supply refusal
| Article 81(1)(b) bans refusal to supply.
|-
|-
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| Efficiency Defense
| Efficiency Defense
| 1
| 1
| Art. L-420-4 offers a limited efficiency defense for otherwise prohibited practices.  
| Article 81(3)of the EC treaty allows an efficiency defense.
|}
|}

Latest revision as of 20:26, 18 August 2008

Score = 27

Governed by:

  • EU law:
  • Articles 81[1] and 82[2] of the EC treaty
  • Regulation 1/2003 of 16 December 2002 [3] and
  • French Law:
  • Some French competition law is codified in provisions of the code de la consommation (consumer code).[4]
  • The majority is contained in Livre (book) IV of the Code de Commerce.[5][6][7]
Category Subcategory Score Comment
Scope Extraterritoriality 1 EU law governs whenever conduct has effects on trade between Member States pursuant to Article 3 of Regulation 1/2003.
Remedies Fines 1 Art. L.420-6 of the Code de Commerce allows for fines for violations of competitive practices. Article L.430-8 allows for fines for improper merger.
Prison Sentences 0 The Code de Commerce does not provide for prison sentences for violations of EU law; however, violations of the national law can result in prison sentences.
Divestitures 1 Are. L.430-8 of the Code de Commerce authorizes divestment in the case of unauthorized mergers.
Private Enforcement 3rd Party Initiation 1 L.470-7 of the Code de Commerce lets trade organizations file civil suits for practices affecting their industry.
Remedies Available to 3rd Parties 1 Private enforcement of Articles 81 and 82 of the EC treaty is mandated and encouraged by the European Commission.[8]
3rd Party Rights in Proceedings 1 Art. L.463-1 of the Code de Commerce states that "interested parties" may participate in proceedings.
Merger Notification[9] Voluntary 0
Mandatory 3 Art. L.430-2 of the Code de Commerce requires that large companies get government approval before or when they merge.
Pre-merger 2 Art. L.430-2 of the Code de Commerce requires that large companies get government approval before or when they merge. However, article L. 430-4 allows companies to merge while awaiting approval under urgent circumstances.
Post-merger 0
Merger Assessment Dominance 1 Art. L.430-6 of the Code de Commerce requires consideration of dominance as part of the decision whether to grant a merger.
Restriction of Competition 1 Art. L.430-6 of the Code de Commerce requires consideration of the effects on competition as part of the decision whether to grant a merger.
Public Interest (Pro D) 1 Art. L.430-6 of the Code de Commerce requires consideration of public public interest, especially with regard to international competitors, when deciding whether to permit a merger.
Public Interest (Pro Authority) 0
Other 0
Efficiency 0
Dominance Limits Access 1 Article 82(b) of the EC treaty prohibits limiting production.
Abusive Acts 1 Article 82 of the EC treaty prohibits abuse of a dominant position.
Price Setting 1 Article 82(a) of the EC treaty prohibits price setting.
Discriminatory Pricing 1 Article 82(c) of the EC treaty prohibits discriminatory conditions.
Resale Price Maintenance 1 Article 82(a) of the EC treaty prohibits resale price maintenance.
Obstacles to Entry 1 Article 82 of the EC treaty prohibits using predatory pricing to drive competitors from the market[10]
Efficiency Defense 0
Restrictive Trade Practices Price Fixing 1 Article 81(1)(a) of the EC treaty prohibits price fixing.
Tying 1 Article 81(1)(e) of the EC treaty prohibits tying.
Market Division 1 Article 81 of the EC treaty prohibits market division[11]


Output Restraint 1 Article 81(1)(b)of the EC treaty prohibits limiting production.
Market Sharing 1 Article 81(1)(c)of the EC treaty prohibits market sharing.
Eliminating Competitors 1 Article 81(1) of the EC treaty prohibits agreements that have the purpose or effect of eliminating competition.
Collusive Tendering/Bid-Rigging 1 Article 81 of the EC treaty prohibits bid-rigging.[12]
Supply Refusal 1 Article 81(1)(b) bans refusal to supply.
Efficiency Defense 1 Article 81(3)of the EC treaty allows an efficiency defense.

References

  1. ↑ available from the EC at http://ec.europa.eu/comm/competition/legislation/treaties/ec/art81_en.html
  2. ↑ available from the EC at http://ec.europa.eu/comm/competition/legislation/treaties/ec/art82_en.html
  3. ↑ Available at http://ec.europa.eu/comm/competition/antitrust/legislation/legislation.html
  4. ↑ Available in French at http://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006069565&dateTexte=20080624
  5. ↑ most recent version of the Code available in French at http://www.legifrance.gouv.fr/affichCode.do?dateTexte=20080624&cidTexte=LEGITEXT000005634379&fastReqId=239729146&fastPos=6&oldAction=rechCodeArticle
  6. ↑ Limited English version available at http://195.83.177.9/code/liste.phtml?lang=uk&c=32&r=3094
  7. ↑ The French Commercial Code in English 2005, Philip Raworth translator, 2005, Dobbs Ferry, NY, Oceana Publications, Inc.
  8. ↑ http://ec.europa.eu/comm/competition/antitrust/actionsdamages/files_white_paper/whitepaper_en.pdf
  9. ↑ The National Competition Authority will assess mergers under the National Competition Act. If the concentration affects trade between the Member States, the European Commission will assess the merger under Regulation 139/2004. See the coding for the European Commission for those provisions.
  10. ↑ See the EC antitrust overview, at http://ec.europa.eu/comm/competition/antitrust/overview_en.html
  11. ↑ Although the wording of the treaty seems to apply to market sharing, the EC also considers market division illegal. See the EU press release at http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/07/29&format=HTML&aged=0&language=EN&guiLanguage=en
  12. ↑ Although not explicitly stated in the statute, bid-rigging is considered anti-competitive behavior. See the case involving gas insulated switchgear, at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/80&format=HTML&aged=0&language=EN&guiLanguage=en
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