November, 2014 – This document offers an overview of commercial relations in the Electrical, Electronic and Communication Industries in France in 2014.

Its aim is to raise awareness among the various economic players of the abuses observed on the market, and it targets sellers, buyers, small and large companies alike, as well as the supervisory authorities whose role it is to ensure the maintenance of healthy and fair competition between these same players.

A number of observations have been made by companies in the sector:

– commercial relations can be based on a balance of power between players, particularly when one of them has a dominant position, or even a monopoly, on the market;
– this balance of power is difficult to rebalance in the contract: the most powerful party often imposes its contractual tool (General Terms and Conditions or purchasing conditions) without any possibility of negotiation;
– the dominated company is obliged to accept exorbitant contractual conditions in the face of growing legal and economic insecurity.

Following on from the Law on the Modernization of the Economy of August 2008, the Consumer Law of March 17, 2014 strengthened the framework and control of inter-company commercial relations (in particular relations between suppliers and distributors) with the aim of guaranteeing a certain balance in the balance of power.

While the contract constitutes the law of the parties, it must nevertheless remain balanced. Should this not be the case, the party who considers himself wronged by the balance of power may bring the dispute with his co-contractor before a competent court.

Each of the topics presented in this guide is dealt with in greater detail in FIEEC fact sheets, available on request from the Legal Department by contacting Julie MACAIRE (jmacaire@fieec.fr).