B2B law

Unfair market practices between enterprises

Published on 7th Jan 2020

The new rules regarding unfair market practices between enterprises entered into force on 1 September 2019


The Act provides for a wider definition of what constitutes “unfair trade practices between enterprises.”

In a nutshell, any practice by an enterprise that is (i) misleading or (ii) aggressive, is forbidden if it results in the other enterprise deciding to enter into or perform obligations under an agreement; enforce specific rights or not; or proceed to payment or not, if it would not have made the same decision, or would have made the decision under different conditions, had the practice not taken place. The terms 'misleading' and 'aggressive' are defined in the Code of Economic Law (CEL) and derived from the provisions prohibiting market practices towards consumers.

The Act firstly prohibits the provision of erroneous or misleading information, or the omission of substantial information, relating to one of the elements mentioned in the provision, when this information (even if it is factually correct) leads to or is likely to lead the enterprise making a decision which it would have not otherwise made.

Secondly, the Act prohibits aggressive market practices that restrict the freedom of choice or conduct of an enterprise, through harassment, coercion (including physical force) or inappropriate influence, in such a way that it significantly limits the other enterprise's ability to make an informed decision relating to a product.

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* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

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