Fundamentals of Competition Law and Its Relevance to Your Business
The competition law comprises regulations from the Act Against Unfair Competition (UWG) as well as special legal provisions such as the Advertising for Medicinal Products Act (HWG), the Price Indication Ordinance (PAngV), etc. Often referred to as unfair competition law, it defines the basic principles for fair conduct between market participants. Unfair commercial practices are prohibited, e.g., misleading advertising, protection against imitation, aggressive sales methods, or comparative advertising. In addition to protecting competitors, competition law aims to protect consumers and the public. However, violations of competition law can only be initiated by competitors,
However, only competitors, qualified associations or organizations can prosecute violations of competition law.
Enforcement and remedies
Under competition law, claims may be brought for injunctive relief, damages, information and reimbursement of legal costs. A competition law claim , is initially asserted outside of court proceedings by means of a cease-and-desist letter. This is a common way of resolving disputes efficiently in Germany. In order to stop unfair practices fast and efficiently, a preliminary injunction can be requested in court. In addition, there is the possibility of clarifying competition law claims in the main proceedings.
Most importantly, competition law can be used not only to enforce specific competition law provisions, but also to regulate other areas of law that govern market conduct. Violations of
competition law provisions can be enforced, as well as regulations from other legal areas that govern market behavior. Violations of labeling or information requirements are therefore often also violations of competition law that can be challenged by competitors or associations with standing.
Harmonization and national differences
Competition law regulations are largely harmonized within the EU, in particular by the Unfair Commercial Practices Directive. However, there are differences in enforcement: In Germany, for example, competitors often issue formal cease-and-desist letters, while in other countries competition law violations are often prosecuted by government authorities.
Our expertise in competition law
AVANTCORE's specialized team of experienced lawyers assists companies of all sizes and from all industries in competition law matters. We represent our clients throughout Germany in out-of-court disputes and before district and higher regional courts, ensuring practical and legally compliant solutions.
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