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Unfair Competition Law

In the practice of competition law, quick entrepreneurial solutions are usually vital. It nevertheless still occasionally happens that our clients would like to have answers to questions of principle.

Unfair Competition Law

Umsatzsteuererstattungs-Modell (VAT Reimbursement Model) – BGH 2006 GRUR 511
With this ruling, the Federal Supreme Court continues the moves to relax the requirements under Unfair-Competition Law in connection with advertising articles. In future, it will only be assumed that enticements are excessive for the purposes of Competition Law if the benefit offered by the advertiser is likely to exert such a powerful influence on the consumer that the latter’s free will in decision-making is impaired. In addition, the Supreme Court makes a clear distinction between loan transactions under Banking Law, for which a permit is required, and the concept of credit according to other provisions.

Preiskampf (Price War) – BGH 1990 GRUR 371 = 1990 IIC 256
To protect competitors, Germany‘s Federal Supreme Court prohibits mutual price undercutting by two companies with significant market power through offering below-cost prices (“loss leaders”).

Metro I‑III, V – BGH 1978 GRUR 173 = 1978 IIC 250; 1979 GRUR 411 = 1980 IIC 103; 1990 GRUR 617; 2001 GRUR 846
With these decisions Germany‘s Federal Supreme Court sets the permissible limits for wholesalers selling goods for private consumption and indicates the organizational steps they must take to prevent such purchases.