Unfair competition and economic parasitism

Victim of acts of unfair competition or accused by a competitor? Our firm can assist you in demand or in defence

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Unfair or parasitic competition: definition, sanctions and compensation

Unfair or parasitic competition is a tort assessed in light of honest commercial practices. It penalises behaviour that goes beyond the normal fairness of economic competition, such as confusion, disparagement, parasitism, disruption. The legal basis for this tort is civil liability which requires to demonstrate a fault, a damage, and a causal link between the two.

In practice, case law doesn’t necessarily require direct or actual competition between businesses to bring an action. What matters is the existence of wrongful acts causing harm.

Why consult a lawyer quickly in cases of unfair competition?

Acts of unfair competition can seriously affect a company’s sustainability, and the longer you wait, the greater the harmful consequences. Therefore, it is essential to act quickly to limit the impact on your business.

For claimants

If you are victim of unfair competition, our firm can represent you to:

urgently stop acts of unfair competition in cases of imminent harm or manifestly unlawful disturbance
request investigative measures to prove the existence of unfair competition
obtain an injunction to cease unfair practices and impose a penalty for non-compliance
secure damages to compensate harm caused by unfair competition
negotiate a settlement when compatible with your interests

For defendants

If you are accused by a competitor, our firm can represent you to:

prepare your defense against the competitor’s claims
respond to letters and formal notices from a legal perspective
quickly find an amicable solution with the opposing counsel
represent you before the courts in case of legal proceedings

Contact us today for a personalised quote and to protect your interests.

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Frequently Asked Questions

What are the different types of acts of unfair competition recognised by French case law?

The main acts of unfair competition recognised by French case law are:

‍confusion: attracting customers by creating confusion about the origin of products and services (imitation of signs, packaging, advertising, origin...)
‍disparagement: discrediting a competitor, their products or services to their customers or business partners (malicious criticism or publications...)
‍parasitism: exploiting another economic actor’s reputation and investments (copying a marketing method or concept...)
‍disruption: destabilising a competitor by interfering with their internal operations (poaching customers, mass recruitment, disclosure of confidential information...)

What are the conditions for obtaining compensation for unfair competition in France?

To obtain compensation, three elements must be proven:

‍a fault: a clearly identifiable unfair act
‍a damage: financial loss, harm to reputation, loss of customers...
‍a causal link: the damage must result from the fault

Note: In some cases, courts have presumed the existence of harm (disparagement, failure by the competitor to comply with regulations).

Is it necessary to prove direct competition or intent to harm to obtain compensation for unfair competition?

No.

Direct competition is not always required, and intent is not necessary.

What matters is demonstrating conduct contrary to honest commercial practices that causes harm.

What are the main types of damages in cases of unfair competition?

The main types of damages are:

Lost profit: diversion of customers, drop in sales, loss of margin, loss of market share, lost commissions, loss of opportunity...
Actual losses: additional costs (marketing, HR), harm to image and reputation, asset depreciation, loss of company value, recruitment and training costs after poaching, reduction or loss of competitive advantage...
Moral harm: damage to image and reputation, loss of confidence in the company, reduced interest from job candidates...