| Dominique Strauss-Kahn Minister of Economy Ministry for Economy, Finance and Industry 139 rue de Bercy 75012 Paris Tel: +33 1 40 04 04 04 François Villeroy de Galhau Stéphane Keïta Aline Peyronnet Jérôme Gallot Noël Dirick |
Pierre Gabriel Deputy Director Products and Markets DGCCRF Caroline Montalcino Claudine Segelle Andrée Grizaut Jérôme Philippe Virginie Beaumenier Eugène Julien Luc Valade |
Jean-Louis Lesquins Head of Section E: Health and Industry DGCCRF Laurent Fleuriot Bernard Nicolaïeff Marie-Dominique Hagelsteen Pierre Cortesse Frédéric Jenny Micheline Pasturel Patrick Hubert |
| France Allen & Overy |
| Competition law is dealt with in France at three levels. The main body responsible for the enforcement of antitrust legislation is the Conseil de la Concurrence ('Competition Council'), a 17-member administrative body which, under the 1986 Ordonnance, is empowered to investigate and punish any infringement of Articles 7 and 8 of the Ordonnance, which prohibit concerted practices and abuses of dominant position. The Conseil de la Concurrence is also competent to ensure the enforcement of Articles 81 (ex 85) and 82 (ex 86) of the EU Treaty. It may act either on its own initiative or following a complaint by a third party or a referral from the DGCCRF, a French government body which monitors the market to prevent competition infringements (see below). Fines of up to 5 per cent of the infringing company's annual turnover may be imposed by the Conseil de la Concurrence. Cases on appeal from the Conseil de la Concurrence are heard by the Paris Court of Appeals.
The Ministry of Economy plays an important part in the enforcement of competition rules. It has a specific department, the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (DGCCRF), which ensures that consumer protection and competition rules are correctly applied on the French market. Though this body does not have the power to penalise undertakings for anti-competitive behaviour, its role in the enforcement of French antitrust policies is of great importance as it may refer on to the Conseil de la Concurrence or judicial authorities any behaviour which it feels is contrary to the Ordonnance. Concentration cases are decided exclusively by the Minister of the Economy, who must however refer the case to the Conseil de la Concurrence for advice where a prohibition is considered. Cases on appeal from the Minister of the Economy are heard by the Conseil d'Etat (the French supreme administrative court). Judicial authorities may also decide antitrust cases initiated by individuals or by the DGCCRF. Unlike the Conseil de la Concurrence, judicial authorities may not fine infringing undertakings but have the power to declare void any anti-competitive agreements and to award appropriate compensation if necessary. Moreover, infringements relating to Chapter IV of the Ordonnance and Article 36 in particular are their exclusive competence. In practice, the competition powers of these authorities mainly relate, concentration issues aside, to the enforcement of Articles 7, 8 and 36 of the Ordonnance. Drafted along the same lines as Articles 81 and 82 of the Treaty of Rome, Articles 7 and 8 of the Ordonnance are designed to prevent any conduct which reduces competition in the market. Article 7 thus prohibits all agreements or concerted practices which might have as their object or effect to restrict competition. Practices considered as constituting anti-competitive behaviour are those which tend to limit access to the market and the free determination of prices and volumes on the market. Article 8.1 prohibits any abuse of a dominant position, while Article 8.2 forbids the abusive exploitation by an undertaking of a state of economic dependency another undertaking may have in relation to it. Article 36 prohibits per se discriminatory pricing and abrupt termination or infringement of distribution networks, even in the absence of a dominant position or of an anti-competitive agreement. Edouard Didier and Jean-Claude Rivalland |
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