Court decision on competition clauses

Press release

How long are companies allowed to contract that the seller may not compete with the buyer after a company acquisition? This has been a crucial issue in a case that the Swedish Competition Authority has pursued against companies in the moving industry.

The agreements in question entailed that the seller would not compete with the buyer for five years.

Now the Patent and Market Court of Appeal, which is the court of final instance, has announced its judgement.

The Patent and Market Court of Appeal has, like the Stockholm District Court, found that the competition clauses in this case do not constitute an infringement. According to the Patent and Market Court of Appeal none of the competition clauses in question have tried to prevent, restrict or distort the competition.

The judgement provides guidance on how to view competition clauses in connection to company acquisitions.

The judgement from the Patent and Market Court of Appeal cannot be appealed.

For more information, please contact:
Jimmy Dominius, Press Officer, tel. +46 (0)76-542 15 80, jimmy dominius@kkv.se
Magnus Jonsson, Deputy Head of Legal Department, tel. +46 (0)8-700 16 68

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