SAUDI ARABIA: Draft new Saudi Commercial Transactions Law (“Commercial Code”).

Saudi Arabia continues to overhaul and modernise its legal system in (commercial) contract matters: Following the entry into force of the Commercial Franchise Regulations (Franchise Law) in 2019 (see IDI Newsletter November 2019), the Civil Transaction Regulations (Saudi Arabia’s first “Civil Code”) was enacted recently by Royal Decree M/191 of 29/11/1444H. (18 June 2023) and […]

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ITALY: Encroachment in franchising: the application of the good faith principle by Italian Courts.

Legal framework Pursuant to Article 3.4, c), of Law 129/2004 (the Italian law on franchising): “(..) The agreement must furthermore expressly indicate: (c)   the scope of the territorial exclusivity, if any, with respect to other franchisees or to channels and sales units directly managed by the franchisor;” The above provision (and particularly the indication “if […]

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URUGUAY: Goodwill indemnity in Uruguay and the impact of the new distribution platforms.

(i) General Remarks Distribution, as a business collaboration contract, has been defined, at least following the interpretation that has prevailed in Uruguay, as a contract between independent parties, each of which fulfills its respective activity without, in principle, a preeminence of one over the other party. A distributor, when he agrees to market the products […]

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NEW ZEALAND: The impact of data privacy in licensing.

When the Covid-19 pandemic hit the world in early 2020 the licence industry was impacted just like anyone else.  However, licensing has contributed immensely to economic recovery by providing considerable growth in relation to new systems development and appointing new licensees in various industries. All parties collect a variety of information and in New Zealand […]

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UNITED ARAB EMIRATES: Significant features of the New Agency Law in the UAE.

On 15 December 2022, the Government of the United Arab Emirates issued the Federal Law No. 3 of 2022 regulating commercial agencies (“New Agency Law”), which replaced the current commercial agency law at the time of this publication, the Federal Law 18 of 1981 (“Old Law”), after 41 years of application. The New Commercial Agencies […]

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FRANCE: Should suppliers fear the new class actions to come under French law? Possible new class actions not only from clients but also from distributors and business partners.

Class actions have existed in French law since the Hamon Law of 2014 (Law No. 2014-344 of 17 March 2014). They were originally limited to consumer law and competition law.  As such, a nationally representative and approved consumer protection association may bring an action before a civil court in order to obtain compensation for individual […]

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ARGENTINA: Comments on Court decisions including cases that impact Argentine franchise law.

Argentine franchise law is contained in 12 articles 1512-1524 of the CCYC. Labor law infringements constitute the bulk of the cases that we shall quote and deal with a specific provision or the laws declaring that (section 1520) there is no labor relationship between franchisor- franchisee since each party is an independent company, except if the law establish […]

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INDIA: Arbitration clauses in agreements which have not been duly stamped cannot be enforced. / Amendments to the Competition Act passed by Parliament.

Arbitration clauses in agreements which have not been duly stamped cannot be enforced. In April 2023, The Supreme Court of India held that when a document on which stamp duty is to be paid as per the Indian Stamp Act contains an arbitration clause and such document has not been duly stamped, it cannot be […]

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BELGIUM: Arbitration in disputes on the termination of exclusive distributor agreements with effect in Belgium.

In a landmark decision of April 7th, 2023, the Belgian Supreme Court (C.21.0325) has ruled that such disputes can be submitted to arbitration, disregarding the fact whether the arbitrator will apply Belgian law or not. By this decision the Court distanced itself from established case law. The Court came to that decision after applying the […]

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FRANCE: A new French law promoting a better balance in the relations between retail chains and their suppliers (The “EGalim 3” or “Descrozaille” law of 30 March 2023).

1. The EGalim laws take their name from the 2017 Etats Généraux de l’alimentation (French National Food Conference), which aimed to promote, in particular, fairer remuneration for producers. The “EGalim 1” law of 30 October 2018[1] and Ordinance No. 2019-359 of 24 April 2019 have resulted in an overhaul of Title IV of Book IV […]

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EU: Court of Justice 24-11-2022, Case C-574/21, QT V. 02 Czech Republic A.S. How are one-off commission payments to be considered in determining the amount of the goodwill indemnity?

Introduction. in this judgment the European Court of justice has dealt with a rather peculiar question arising in the context of the interpretation of Article 17 of Directive 86/653/EEC of 18 December 1986 on self-employed commercial agents, i.e. the impact of “one-off” commission payments on the deter-mination of the goodwill indemnity provided by such Article. […]

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ARGENTINA: Relevant cases on franchising.

CTL S.A VS MATIAS CASTILLO vs CASANUOVA S.A. AND OTHERS C on / bankruptcy -march 22 1918-. Summary: Mr Castillo was labor creditor from Casanuova franchisee and he requested the extension of bankruptcy on the basis of patrimonial confusion under law 24.522 (a, 161) between CTL the bankrupted and restaurant partners A,A franchisors, plus the two  other franchisees […]

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FRANCE: The French Court of Cassation has upheld almost in full the judgment of the Court of Appeal regarding the distribution of mobile telephone services by Orange in the French overseas territories (Full approval on damages of EUR 181.5 million in principal, part of appeal overturned limited to the starting date of the interest).

The judgment on the principal award obtained before the Paris Court of Appeal, which constitutes one of the largest damages cases ever tried in France, is now final. The Court of Cassation’s ruling is very important for private enforcement law as it has clarified several key legal issues in relation to damages for anticompetitive practices. […]

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ITALY: The Italian Antitrust Authority re-balances contractual clauses in franchise agreements.

On January 31st, 2023 the Italian Antitrust Authority (“Autorità Garante della Concorrenza e del Mercato” – “AGCM”) formally closed a proceeding against Benetton on abuse of economic dependence. The proceedings arose from a complaint by a former franchisee who operated two Benetton shops, which complained of having suffered an abuse of economic dependence, which allegedly […]

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SWITZERLAND: “Lex Booking” – the new Article 8a UCA as the first GTC content control in B2B-settings.

On 1 December 2022, a new Article 8a of the Swiss Federal Act on Unfair Competition (UCA) entered into force. This so-called “Lex Booking” provision aims to improve the market position of accommodation providers vis-à-vis online booking platforms by prohibiting parity clauses regarding price, availability or conditions in contracts between booking platforms and accommodation providers. […]

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CHINA: Are constraints on “relatively advantaged positions” coming to Chinese contracts?

The 国家市场监督管理总局 – State Administration for Market Regulation (“SAMR”) in China has released a draft Amendments to the 反不正当竞争法 – Anti-Unfair Competition Law (hereinafter the “Draft”) on November 22, 2022. The Draft, amongst other things, proposed the addition of the “相对优势地位” or “relatively advantaged position” concept and the relevant factors for determining this position. This […]

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FRANCE: French agency case law overturned and aligned with EU case law: a principal can no longer rely on a serious breach discovered after the termination to deprive the agent of the benefit of the termination indemnity (Comment of the decision of the French Cour de cassation, Commercial Chamber, 16 November 2022, LawLex202200009995JBJ).

In this case, a principal accused his agent of having engaged in the representation of a competitor in parallel with his mandate. The agent argued that this activity had been known to the principal for many years. However, several years after the beginning of their collaboration, the principal amended the contract to prohibit the agent […]

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