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Javico International and Javico Ag v. Yves Saint Laurent Parfums SA (YSLP)

1998 E.C.R. I-1983 (1998)

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Javico International and Javico Ag v. Yves Saint Laurent Parfums SA (YSLP)

European Union Court of Justice

1998 E.C.R. I-1983 (1998)

Facts

Javico International and Javico Ag (collectively, Javico) (defendants) contracted with Yves Saint Laurent Parfums SA (YSLP) (plaintiff) to distribute YSLP’s products in non-European Union countries Russia, Ukraine, and Slovenia. Both Javico and YSLP were based in European Union member countries. The contracts prohibited Javico from selling YSLP’s products outside of the assigned territories. YSLP later discovered that Javico had distributed some of the products intended for its assigned countries to European Union countries, including Belgium, the United Kingdom, and the Netherlands. YSLP terminated its contracts with Javico and commenced an action in French court for compensation and damages. The French court upheld YSLP’s contract termination, and Javico appealed, arguing that the agreements’ territory restraints violated Article 101 of the Treaty on the Functioning of the European Union (TFEU). The French appellate court stayed its proceedings and asked the European Union Court of Justice to rule on the legality of the contract provisions under European antitrust law.

Rule of Law

Issue

Holding and Reasoning

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