French competition enforcement has intensified across all sectors. The Autorité de la concurrence (French Competition Authority) has expanded its investigative priorities, issued record-level financial penalties, and accelerated proceedings under French commercial legislation (the Code de commerce). International businesses operating in France. whether as a société à responsabilité limitée (SARL) or a société par actions simplifiée (SAS). face heightened scrutiny across three enforcement pillars: cartel conduct. Market dominance abuse, and merger notification failures.
Competition authority actions in France are governed by French commercial legislation and supervised by the Autorité de la concurrence. This holds broad powers to investigate. Sanction. Additionally, impose behavioural remedies on companies operating in the French market. Penalties for competition law violations can reach a substantial share of a company's annual turnover. International groups with French subsidiaries, distribution networks, or market presence must assess their exposure immediately.
This alert outlines the key enforcement developments, which business categories are affected, and the specific steps international companies should take now.
What has changed: enforcement priorities and penalty levels
The Autorité de la concurrence has formally announced an updated set of enforcement priorities. These concentrate on digital markets, retail supply chains, and cross-border cartel conduct. The Authority has also revised its methodology for calculating financial penalties, placing greater emphasis on the duration of the infringement and the aggravated role of parent companies.
Three developments define the current environment. First, the Authority has accelerated its use of dawn raids – formal investigations conducted without prior notice, often executed through coordinating huissiers de justice (French court-appointed enforcement officers) alongside Authority inspectors. These actions now target mid-sized companies, not only large multinationals. Second, the leniency programme has been restructured to incentivise earlier disclosure. Companies that report cartel conduct before an investigation opens may receive a full or partial reduction in penalties. The revised programme raises the procedural burden for applicants, however, and legal errors at the application stage can forfeit the benefit entirely. Third, the Cour de cassation (Supreme Court of France) has confirmed that parent companies bear joint and several liability for competition violations committed by subsidiaries. including foreign parent entities with no direct trading presence in France.
Merger notification thresholds under French competition legislation remain unchanged in numeric terms, but the Authority has signalled a lower tolerance for procedural non-compliance. Late notifications and incomplete filings now attract accelerated review and provisional suspensory measures, which can stall a transaction for several months.
For immediate guidance on managing French competition risk, contact us at info@ferrazwhitmore.com.
Who is affected: threshold criteria and business categories
The enforcement shift affects companies across a wide range of structures and sectors. The following categories face the most direct exposure.
- International groups with French subsidiaries – particularly those operating distribution or supply agreements that contain exclusivity, resale price maintenance, or market allocation clauses.
- Companies approaching or exceeding the merger notification thresholds under French competition legislation – the turnover figures apply at both the combined group level and the French market level.
- Platform operators and digital intermediaries – the Authority has designated these as a priority sector and applies a broader interpretation of market dominance for digital ecosystems.
- Buyers and sellers in sectors with a history of cartel conduct, including construction, logistics, financial services, and food retail.
- Companies that have received informal leniency approaches from co-conspirators – once a third party files a leniency application, the window for self-reporting closes rapidly.
The joint and several liability position confirmed by the Cour de cassation means that a foreign parent operating through a French SAS or SARL cannot assume isolation from enforcement consequences. Group-level competition compliance programmes must account for French-law obligations explicitly. Companies that rely on standard English-law compliance templates – without adapting them to French commercial legislation – are particularly exposed.
The compliance deadline for adjusting internal procedures is tied to the Authority's current investigation cycle. Businesses under active or potential investigation have no grace period. Those with distribution agreements containing potentially restrictive clauses should initiate a legal review before the next Authority reporting period, which falls in the first quarter of the calendar year.
Businesses navigating related corporate disputes in France should consider whether pending litigation intersects with competition law exposure – particularly in supply chain and joint venture contexts.
What to do now: five immediate actions
The following steps reflect current practice for international companies exposed to French competition enforcement.
1. Audit vertical and horizontal agreements. Review all distribution, supply, franchise, and agency agreements governed by or operating in French law. Identify clauses that restrict pricing, territory, or customer access. French competition legislation prohibits these even when the agreement is governed by foreign law, if the effects are felt in the French market.
2. Map merger notification exposure. If a transaction is at or near the French turnover thresholds, engage counsel before signing heads of terms. Filing after signing – and certainly after closing – creates a standstill violation that triggers independent sanctions. Our analysis of competition law in France sets out the procedural steps in detail.
3. Assess leniency programme eligibility. If your organisation has information about cartel conduct – past or present – take specialist advice on the leniency programme immediately. The order of filing matters: a second applicant receives a reduced benefit, and a third applicant may receive none at all.
4. Review parent company liability exposure. Where a French subsidiary is party to any investigation or complaint, assess whether the group structure creates parent company exposure. The Cour de cassation's approach to economic unity means ownership alone may be sufficient to attribute liability upward.
5. Prepare a dawn raid protocol. Appoint a legal contact and establish a clear internal procedure for responding to Authority inspectors. French competition legislation gives inspectors broad access rights. Staff who obstruct or delay an inspection – even inadvertently – may trigger aggravated penalties. Coordinating in advance with a lawyer in France familiar with investigation procedure reduces that risk significantly.
For a tailored strategy on competition law compliance in France, reach out to info@ferrazwhitmore.com.
Businesses with cross-border exposure should also review how French enforcement coordinates with EU-level proceedings – particularly where the European Commission holds concurrent jurisdiction. Our alert on competition enforcement in Portugal addresses comparable issues in a neighbouring civil law jurisdiction.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. As an international law firm in France and across Europe, our team combines Portuguese civil law expertise with English common law tradition to deliver competition law services for companies operating in French and EU markets. We advise international entrepreneurs, institutional investors, and in-house legal teams on cartel risk, merger notification, leniency applications, and competition authority investigations. The firm's competition law practice covers major European jurisdictions and is supported by a network of local counsel with direct experience before the Autorité de la concurrence. Our attorneys have advised on competition matters across both civil law and common law systems, including cross-border enforcement and follow-on damages claims. To discuss your competition law exposure in France, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.