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Abuse of Economic Dependence - The Centre for European Policy ...

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34 A Gap in the En<strong>for</strong>cement <strong>of</strong> Article 82<br />

<strong>The</strong> French authorities will apply the four abovementioned criteria in<br />

judging whether a particular conduct constitutes an abuse <strong>of</strong> economic<br />

dependence. Each complaint received which meets these four criteria will<br />

be assumed that it entails economic dependence. After substantiating the<br />

existence <strong>of</strong> economic dependence the authorities will examine whether<br />

there is an abuse and whether the abuse affects competition. Complaints<br />

which meet the ‘economic dependence’ and the ‘abuse’ criteria are likely<br />

to also have an adverse impact on competition and thus will be investigated<br />

further by the authorities. Since 1986, there have been between 40<br />

and 50 complaints investigated which led to seven condemnation decisions.<br />

C. Portugal<br />

<strong>The</strong> Portuguese legislation prohibits the abuse <strong>of</strong> economic dependence.<br />

According to Article 7:<br />

<strong>Abuse</strong> <strong>of</strong> economic dependence<br />

1—Ins<strong>of</strong>ar as it may affect the functioning <strong>of</strong> the market or the structure<br />

<strong>of</strong> the competition, one or more undertakings shall not engage in the<br />

abusive exploitation <strong>of</strong> the economic dependence on it or them <strong>of</strong> any<br />

supplier or client on account <strong>of</strong> the absence <strong>of</strong> an equivalent alternative.<br />

2—<strong>The</strong> following in particular may be considered abusive:<br />

a) Any <strong>of</strong> the <strong>for</strong>ms <strong>of</strong> behaviour laid out in Article 4 (1)<br />

b) <strong>The</strong> unjustified cessation, total or partial, <strong>of</strong> an established<br />

commercial relationship, with due consideration being given to<br />

prior commercial relations, the recognised usage in that area <strong>of</strong><br />

economic activity and the contractual conditions established.<br />

3—For the purposes <strong>of</strong> paragraph 1, an undertaking is understood as<br />

having no equivalent alternative when:<br />

a) <strong>The</strong> supply <strong>of</strong> the good or service in question, in particular that <strong>of</strong><br />

distribution, is provided by a restricted number <strong>of</strong> undertakings;<br />

and<br />

b) <strong>The</strong> undertaking cannot obtain identical conditions from other<br />

commercial partners in a reasonable space <strong>of</strong> time.<br />

<strong>The</strong> Portuguese authority considers that a company is in a situation <strong>of</strong><br />

economic dependence as regards the supplier or client with whom it<br />

contracts an important part <strong>of</strong> its sales or purchases, when, if the latter<br />

wanted to terminate those sales or purchases, it would not be able to find<br />

in the market any equivalent product or service. <strong>The</strong> following criteria<br />

support a finding <strong>of</strong> economic dependence <strong>of</strong> distributors vis-à-vis their<br />

suppliers: (i) the notoriety <strong>of</strong> the trade mark; (ii) the supplier’s market share;

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