ECJ on the compatibility of franchise agreements for the distribution of goods with competition law
28-01-1986 Print this pageIPPT19860128, ECJ, Pronuptia
The compatibility of franchise agreements for the distribution of goods with competition law (article 85(1) EEC Treaty) depends on the provisions contained in such agreements: provisions which are essential in order to avoid the risk that know-how and assistance might benefit competitors do not constitute restrictions on competition, the same goes for provisions necessary for maintaining the identity and reputation of the business name or symbol, provisions which share markets or prevent price competition do restrict competition.
