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Unlock expert insights on competition law and administrative police measures with this comprehensive advisory opinion from the Council of State. Discover how regulatory authorities must balance economic activities with competition rules when implementing local regulations, and learn about the three-stage process for determining abuse of dominant position. Understand the importance of considering competition rules when issuing administrative police measures and how this impacts the legality of local advertising regulations. Dive into the details of this landmark case, where the Council of State clarifies the conditions for implementing administrative police measures and their relation to competition law, providing valuable guidance for businesses and regulatory bodies alike.
[...] On 7 December 1998, the mayor of Bayonne had served a notice to the company L&P Publicités to remove two new panels that it had installed in this area. The company, however, contested this decision before the administrative court, citing, inter alia, the illegality of the decree of 24 July 1986. To argue this illegality, the company had raised, inter alia, as a means a contradiction with the provisions of the ordinance of 1er December 1986 relating to prices and competition. [...]
[...] - If so, must these rules be taken into account to judge the legality of the local regulation of advertising in a restricted advertising area? - If so, can the concern to limit the development of outdoor advertising in the conditions allowed by the law of 29 December 1979 justify the maintenance of a dominant position whose holder(s) would be able to abuse it? To the first two questions, the Council of State provided a positive response and, with regard to the third, clarified the conditions for implementing its methods, particularly in light of the general rules governing the issuance of administrative police measures (II). [...]
[...] The admission of taking into account the rules of competition law in the issuance of administrative police measures A. Sources of legality to control police measures not directly related to competition law - Until now, to control administrative police measures, the JA did not rely directly on the rules related to competition ordinance of 1he December 1986 then codified in the Commercial Code) - However, the judge's control over the legality of these measures has long been inspired by concerns related to maintaining competition through other major principles it has developed: freedom of commerce and industry (CE Daudignac); equality (Constitutions, law or PDG: CE Société des concerts du conservatoire); misuse of power (powers of the administration used for a purpose other than the purpose for which they are granted). [...]
[...] - However, "the creation of a dominant position by the effect of local regulation of display is not incompatible with the respect of provisions relating to competition, unless this regulation necessarily leads to exploitation of a dominant position in an abusive manner. - It is therefore in light of the consequences of establishing a dominant position that the regulatory authority must be particularly vigilant - The reasoning for qualifying an abuse of dominant position is built in three stages: ? Determination of the 'relevant market' ? [...]
[...] Existence of a dominant position ? [...]
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