Competition Law in Luxembourg

At the beginning of the year 2000 European countries, including Luxembourg, had no specific authority regulating competition. Luxembourg, however, was the only European country to have a law regulating lawful practices between companies. This law was called The Restrictive Business Practices Act and was enabled in 1970. The law was modernized in the early 2000’s when it also received a new name: The Competition Law, which was enforced in 2004. The law was last amended in 2012.

Our attorneys in Luxembourg can offer more information on the Competition Act in the Grand Duchy.

Commercial contracts under the Luxembourg Competition Act

The competition legislation’s main purpose is to offer uniformity on the local market by not allowing Luxembourg companies to establish certain prices or conditions on the sale of products or services. This is why, the Competition Act refers to:

• -          the conclusion of unlawful commercial agreements;
• -          unlawful practices, which may obstruct or limit fair competition on the market.

These practices consist in fixing prices, setting different conditions for business partners or including contractual clauses unconnected to the agreement itself which would create unevenness on the market and would prevent other companies in Luxembourg to sell their products or services.

Our Luxembourg lawyers can assist you in drafting contracts while respecting the content of the Competition Act.

Dominant position under the Competition Law in Luxembourg

One of the most important parts of the Competition Act, Article 5, refers to companies in Luxembourg which could adopt a dominant position on the market through the same practices mentioned above. Dominant position implies a company can take advantage of a stronger position on the market and profit from it by imposing its own regulations to other competitors.

However, the Competition Law in the Grand Duchy is enforced by the Competition Inspectorate which cooperates with the administrative courts in Luxembourg. These courts can offer monetary or moral remedies when an unfair competition case is brought before them.

Our lawyers in Luxembourg can offer more information on the competition legislation and litigation cases related to it. You can also contact us if you want to open a company in Luxembourg.