In the business world, the unfair competition represents a major challenge for companies keen to preserve their position in the market. This illegal practice can cause considerable damage to a company’s reputation and finances. It is therefore crucial to understand this concept, its manifestations and the means to protect yourself from it.
What is unfair competition?
There unfair competition is defined as a abuse of freedom of trade constituting a fault, damage and a causal link. It engages the civil liability of its author, in accordance with article 1240 of the Civil Code. This practice aims to take an unfair advantage to the detriment of a competitor, using means contrary to honest commercial practices.
The main acts of unfair competition include:
- THE denigration : malicious criticism aimed at discrediting a competitor
- There confusion : imitation creating a risk of confusion for consumers
- THE parasitism : taking unfair advantage of a competitor’s investments
- There disorganization : disrupt the functioning of a competing company
For an unfair competition action to be admissible, it is necessary to prove three essential elements:
- A fault (unfair act)
- Damage (often a loss of customers)
- A causal link between the fault and the damage
Behaviors constituting unfair competition
Acts of unfair competition can take various forms, both in the physical and digital world. On the internet, this illicit practice manifests itself in particular by:
- THE online parasitism : copying of website, unauthorized use of content
- THE digital bashing : publication of false negative reviews
- There online counterfeiting : illegal reproduction of protected products or services
These behaviors can cause considerable damage to victim companies, affecting their reputation, customer base and turnover. It is therefore crucial for businesses to remain vigilant and implement effective protection strategies.
Sanctions and remedies against unfair competition
Faced with acts of unfair competition, the law provides for several sanctions and remedies to protect injured companies. The main sanctions may include:
- Of the damages to compensate for the damage suffered
- There cessation of unfair acts ordered by the court
- There publication of the court decision to restore reputation
To act effectively against unfair competition, it is recommended to:
- Gather solid evidence (screenshots, bailiff’s reports)
- Contact the competent court as soon as possible
- Call a lawyer specializing in business law
It is vital to note that the limitation period to bring an action for unfair competition is 5 years. This period runs from the day on which the holder of a right knew or should have known the facts allowing him to exercise it.
Legal means and litigation in matters of unfair competition
Unfair competition litigation offers several options to victim companies. The action can be brought by:
- Anyone with an interest in acting
- The public prosecutor
- The Minister of the Economy
The specialized courts in matters of unfair competition are established by decree, thus ensuring expertise in the handling of these complex cases. To maximize the chances of success, it is recommended to put in place a robust legal strategy.
| Stage | Action |
|---|---|
| 1 | Identify and document acts of unfair competition |
| 2 | Evaluate the damage suffered |
| 3 | Consult a specialist lawyer |
| 4 | Send a formal notice |
| 5 | Take legal action if necessary |
By taking a proactive approach and using the legal tools at their disposal, businesses can effectively protect themselves against the unfair practices of their competitors. Vigilance and responsiveness are essential to preserve the integrity and competitiveness of its activity in an increasingly complex economic environment.