FRANCE: By decision n° 23-D-13 dated 19 December 2023 (the “Decision”), the French Competition Authority (the “FCA”) fined Rolex France SAS, as perpetrator, jointly and severally with Rolex Holding SA and the Hans Wilsdorf Foundation, as parent companies, a total of 91,600,000 euros for prohibiting its selected distributors from selling its luxury watches online.

This Decision follows the referrals made in January 2017 by the professional organisation Union de la Bijouterie Horlogerie and the company Pellegrin & Fils. These referrals come in the context of a dispute between Rolex France and its distributors following the network head’s wish to restructure its distribution network in France, which involves reducing the […]

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BULGARIA: New block exemption decision adopted by the Bulgarian Competition Protection Commission

On 11 January 2024, the Bulgarian Competition Protection Commission (the ‘Commission’) officially adopted a new Block Exemption Decision (the ‘Decision’) of certain categories of agreements, decisions and concerted practices. 1. Prohibited Agreements and Block Exemption Article 15 of the Bulgarian Competition Protection Act (the ‘Act’) prohibits all agreements between undertakings, decisions by associations of undertakings […]

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BELGIUM: Decision of the Belgian Supreme Court on of “pre-contractual information obligations” in a franchise agreement

On June 2, 2023, the Belgian Supreme Court has ruled in a matter concerning the breach of “pre-contractual information obligations” in a franchise agreement. Pursuant to Article 3 of the Law of December 19, 2005 concerning “pre-contractual information in commercial cooperation agreements”, (as revised by article 4, 2° of the law of April 2, 2014), […]

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TURKEY: Decision of the 11th Chamber of the Turkish Supreme Court Assessing the Penalty Clause and Termination Fee within the Franchise Agreement.

The lawsuit is related to the claim of the franchisor for the collection of the franchise fees for the remaining term of the franchise agreement together along with the penalty clause based on the claim that the franchise agreement between the parties has been terminated by the franchisee without any justifiable ground. The Court of […]

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BELGIUM: Decision of the Belgian Supreme Court on an explicit termination clause.

On May 11, 2023, the Belgian Supreme Court has ruled in a matter concerning the immediate termination of a distribution agreement, based on an explicit termination clause. The case concerned the termination of a distribution agreement by Rolex. A contract clause allowed Rolex not only to terminate the agreement in case of contractual breach, but […]

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INDIA: Supreme Court overrules earlier decision regarding unenforceability of unstamped arbitration agreements.

The Supreme Court of India overruled a decision from 2023 regarding the enforceability of arbitration agreements, on which stamp duty was not paid as mandatorily required under the Indian Stamp Act. The Indian Stamp Act provides that ‘stamp duty’ (an indirect tax paid to the Government) must be paid on all instruments on which such […]

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EU: A contract to enter into a future contract of franchising does not fall under the notion of ‘provision of services’ provided by Regulation Brussels I bis

With judgement of September 14, 2023 (in the proceeding C-393/22, EXTERIA s.r.o. v. Spravime s.r.o.), the European Court of Justice decided on the interpretation of Article 7(1) Reg. No. 1215/2012, in the context of a contract to enter into a future contract of franchising. Facts On 28 June 2018, EXTÉRIA s.r.o., a company established in […]

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CANADA: Conscious Compliance: The Role of Foreign Corporations in Canada’s Fight Against Modern Slavery

Franchisors and parent companies supplying goods for sale in Canada should begin to evaluate and address the ethical standards of their supply chains. Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (the “Act”) will impose annual reporting obligations on Canadian businesses […]

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DENMARK: Effective Termination of an Exclusive Distribution Agreement?

The Danish Maritime and Commercial Court recently rendered judgment on the effectiveness of a termination notice that did not comply with the contractual requirements for termination of an exclusive distribution agreement.   In 1988, a Danish supplier of vacuum cleaners entered into an exclusive distribution agreement with a Moroccan distributor for the distribution of certain […]

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CANADA: Saskatchewan introduces comprehensive franchise legislation.

Saskatchewan could soon become the seventh Canadian province to enact franchise legislation, joining Alberta, Ontario, Prince Edward Island, New Brunswick, Manitoba and British Columbia. The Legislative Assembly of Saskatchewan introduced Bill 149, The Franchise Disclosure Act (the Saskatchewan bill), for first reading on November 9, 2023. If enacted, the Saskatchewan bill would serve as the province’s first […]

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AUSTRIA: Is the agent´s obligation to repay a “fixed fee” in the event of premature termination invalid? (OLG Graz, 14 April 2023).

A commercial agent received a monthly fixed fee/bonus linked to at least 5 years of work and the achievement of certain targets. After 3½ years, he wanted to terminate the contract and was then confronted with a reclaim. The contractual provisions A commercial agent for rental contracts for printers received a turnover-based commission. Furthermore, he […]

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EU: A recent decision of the EU Court of Justice on price fixing in distributorship contracts.

With decision of June 29, 2023 (in the proceeding C-211/22, Super Bock Bebidas SA, AN, BQ v. Autoridade de Concorrência), the European Court of Justice decided on the interpretation of the rules of Reg. No. 2790/1999 and No. 330/2010 on price fixing, in the context of an exclusive distributorship contract. The judgement is very interesting, […]

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