Competition News February 2016

Refusing to settle in the case of local anticompetitive practices is not necessarily the right decision

As might be expected, the decision handed down by the French Competition Authority on January 17, 2016 regarding a cartel between seven companies in the context of public contracts for school transport in the Bas-Rhin region, is a good example of why companies should really think twice before refusing to negotiate with the DIRECCTE (Regional Directorate for companies, competition, consumer affairs, labor and employment).

Since 2008, the Minister of Economy (through the DGCCRF (General Directorate for competition, consumer affairs and prevention of fraud), and locally the DIRECCTE) is responsible for settling local anticompetitive practices involving SMEs to allow the French Competition Authority to concentrate on the most important cases. In this respect, the Minister can notably order the companies involved to cease their practices and conclude settlements