Introduction
Companies compete with each other every day to gain or maintain market share. Fair competition is the engine of innovation and economic progress, but what if the boundaries of the permissible are exceeded? Belgian law protects companies from unfair practices through the law on unlawful competition.
The basis for this protection is found in Article VI.104 of the Code of Economic Law (WER): "Prohibited is any act contrary to fair market practices by which a firm harms or may harm the professional interests of one or more other firms." This open standard is supplemented by specific prohibitions and fleshed out by case law.
In this overview, we discuss the various forms of unlawful competition that companies may face. For each category, we explain what the legal criteria are, what actions can be taken and how we as a law firm can assist you.
Forms of unlawful market practices
1. Deception
Deception refers to acts by which a competitor disseminates false or misleading information about its own products or services, or those of competitors. This includes:
- Misleading advertising
- Incorrect information about prices, quality or features
- False comparisons with competitors
- Misleading claims about origin or method of production
Deception undermines consumer confidence and can directly harm competitors. The legislature has paid particular attention to this form of unlawful competition through strict regulation.
2. Aggression
Aggressive commercial practices include conduct that substantially restricts the choice or conduct of a consumer or competitor by:
- Harassment
- Coercion (including physical violence)
- Undue influence
- Stalking or annoying following
- Inappropriate and persistent communication
Such practices are strictly condemned and can lead to substantial damages and court bans.
3. Unlawful appropriation
Unlawful appropriation refers to the unauthorized use of a competitor's material or intangible property, divided into:
(a) Violation of intellectual property rights
This includes violations of:
For this matter, please refer to our page on intellectual property lawn.
(b) Violation of know-how
Knowhow includes the unpatented practical knowledge resulting from experience and research. Although this knowledge is not always formally protected by intellectual property rights, it still enjoys legal protection against wrongful appropriation.
(c) Corporate espionage
Corporate espionage refers to the unauthorized acquisition of trade secrets or confidential information through unethical or illegal means such as:
- Infiltration
- Hacking
- Bribery of employees
- Eavesdropping
4. Creating confusion
Confusion foundation refers to practices in which a company presents itself in a way that creates confusion with a competitor, such as:
- Use of similar trade names
- Imitation of logos or corporate identities
- Copying packaging or product designs
- Imitation of websites or advertising campaigns
Among other things, the law here protects companies' trade names even without formal registration as trademarks.
5. Breaking down (blackening/blackening).
Degrading practices involve spreading negative statements about a competitor with the aim of damaging their reputation, such as:
- Defamatory allegations
- Denigrating comparisons
- Unsupported negative reviews
- Spread of rumors
Unlike fair criticism or objective comparisons, deconstructive practices specifically target reputational damage without an objective basis.
6. Hook up
Hooking (or parasitic competition) involves taking undue advantage of a competitor's efforts, investments or reputation without making comparable efforts yourself, such as:
- Unlawful use of another's reputation
- Free-riding on marketing efforts
- Use of similar slogans or campaigns
- Imitation just beyond the bounds of intellectual property rights
7. Obstruct
Obstructive practices are aimed at interfering with competitors' normal business operations:
(a) Destabilizing someone else's business
In particular, this includes the systematic shedding of personnel, not to fill one's own personnel needs but specifically to weaken a competitor.
(b) Boycott
A boycott involves calling for avoiding doing business with a particular company, without legitimate justification.
(c) Disposal of clientele
Although competitors may in principle approach each other's customers, there are limits to the methods that may be used for this purpose. Unlawful, for example, is the systematic approaching of customers using customer lists taken by a former employee.
8. Third-party complicity in breach of contract
This covers situations where a company knowingly collaborates with or induces the violation of contractual obligations by a third party to a competitor, such as:
- Encouraging employees to violate non-compete agreements
- Inducing violation of exclusivity agreements
- Facilitating the breach of distribution obligations
Read more about third-party complicity in breach of contract here.
9. Distortion of competition
Anti-competitive practices include practices that distort fair competition, such as:
- Use of unlawful state aid
- Violation of sectoral regulations
- Abuse of economic dominance
- Price fixing and cartelization
10. Abuse of law as a residual category
As a residual category, an abuse of rights can be invoked when a company acts formally within its rights, but uses those rights in a way that is outside normal use and causes harm to competitors. This includes individual sales refusal without objective justification.
How can we help you?
Our specialized team of lawyers has years of experience in assisting companies facing unlawful competition. We offer:
- Preventive advice to identify and avoid unlawful competition practices
- Rapid intervention through strike procedures in urgent cases
- Assistance in gathering evidence
- Negotiating settlement agreements
- Assistance in legal proceedings
- Calculation and claim of damages suffered
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