Keywords
Summary

Keywords

1 . COMPETITION - AGREEMENTS , DECISIONS AND CONCERTED PRACTICES - ADVERSE EFFECT ON COMPETITION - FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS TO BE ASSESSED ACCORDING TO THEIR PROVISIONS AND THEIR ECONOMIC CONTEXT

( EEC TREATY , ART . 85 ( 1 ))

2 . COMPETITION - AGREEMENTS , DECISIONS AND CONCERTED PRACTICES - ADVERSE EFFECT ON COMPETITION - FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS - PROVISIONS STRICTLY NECESSARY FOR THE FUNCTIONING OF THE FRANCHISE SYSTEM - LAWFUL - PROVISIONS HAVING THE EFFECT OF SHARING MARKETS - UNLAWFUL

( EEC TREATY , ART . 85 ( 1 ))

3 . COMPETITION - AGREEMENTS , DECISIONS AND CONCERTED PRACTICES - FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS - PRICE RECOMMENDATIONS - PERMISSIBILITY - CONDITIONS

( EEC TREATY , ART . 85 ( 1 ))

4 . COMPETITION - AGREEMENTS , DECISIONS AND CONCERTED PRACTICES - EFFECT ON TRADE BETWEEN MEMBER STATES - FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS HAVING THE EFFECT OF SHARING MARKETS

( EEC TREATY , ART . 85 ( 1 ))

5 . COMPETITION - AGREEMENTS , DECISIONS AND CONCERTED PRACTICES - PROHIBITION - BLOCK EXEMPTION - REGULATION NO 67/67 - FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS - INAPPLICABLE

( COMMISSION REGULATION NO 67/67 )

Summary

1 . A SYSTEM OF FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS WHICH ALLOWS THE FRANCHISOR TO DERIVE FINANCIAL BENEFIT FROM A SET OF BUSINESS METHODS AND THE REPUTATION OF A BUSINESS NAME DOES NOT IN ITSELF INTERFERE WITH COMPETITION . THE COMPATIBILITY OF SUCH FRANCHISE AGREEMENTS WITH ARTICLE 85 ( 1 ) OF THE TREATY CANNOT BE ASSESSED IN ABSTRACTO BUT DEPENDS ON THE PROVISIONS CONTAINED THEREIN AND ON THEIR ECONOMIC CONTEXT .

2 . THE PROVISIONS OF FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS WHICH ARE STRICTLY NECESSARY FOR THE FUNCTIONING OF THE SYSTEM OF FRANCHISES DO NOT CONSTITUTE RESTRICTIONS OF COMPETITION FOR THE PURPOSES OF ARTICLE 85 ( 1 ) OF THE TREATY . THAT IS TRUE OF PROVISIONS WHICH PREVENT THE KNOW-HOW AND ASSISTANCE PROVIDED BY THE FRANCHISOR FROM BENEFITING HIS COMPETITORS . IT IS ALSO TRUE OF PROVISIONS WHICH ESTABLISH THE CONTROL STRICTLY NECESSARY FOR MAINTAINING THE IDENTITY AND REPUTATION OF THE NETWORK IDENTIFIED BY THE FRANCHISOR ' S BUSINESS NAME OR SYMBOL .

HOWEVER , PROVISIONS WHICH SHARE MARKETS BETWEEN THE FRANCHISOR AND THE FRANCHISEES OR BETWEEN FRANCHISEES CONSTITUTE RESTRICTIONS OF COMPETITION FOR THE PURPOSES OF THAT ARTICLE .

3 . THE FACT THAT THE FRANCHISOR MAKES PRICE RECOMMENDATIONS TO THE FRANCHISEE DOES NOT CONSTITUTE A RESTRICTION OF COMPETITION , SO LONG AS THERE IS NO CONCERTED PRACTICE BETWEEN THE FRANCHISOR AND THE FRANCHISEES OR BETWEEN THE FRANCHISEES THEMSELVES FOR THE ACTUAL APPLICATION OF SUCH PRICES .

4 . FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS WHICH CONTAIN PROVISIONS SHARING MARKETS BETWEEN THE FRANCHISOR AND THE FRANCHISEES OR BETWEEN THE FRANCHISEES THEMSELVES ARE IN ANY EVENT LIABLE TO AFFECT TRADE BETWEEN MEMBER STATES , EVEN IF THEY ARE ENTERED INTO BETWEEN UNDERTAKINGS ESTABLISHED IN THE SAME MEMBER STATE , IN SO FAR AS THEY PREVENT FRANCHISEES FROM ESTABLISHING THEMSELVES IN ANOTHER MEMBER STATE .

5 . IN VIEW OF THE PARTICULAR CHARACTERISTICS OF SUCH AGREEMENTS , IN COMPARISON WITH EXCLUSIVE DEALING AGREEMENTS , REGULATION NO 67/67 IS NOT APPLICABLE TO FRANCHISE AGREEMENTS FOR THE DISTRIBUTION OF GOODS .