Venezuelan News - Free Competition

Author:Ms Ana Arriaga
Profession:Torres Plaz & Araujo Abogados

No unfair competition. BMW obtains favorable decision from PROCOMPETENCIA

Last June 18, the Superintendency for the Promotion and Protection of Free Competition ("PROCOMPETENCIA") decided in favor of German automotive company BMW in a conflict in which BMW had been engaged with CorporaciÛn Eurocars, concerning the refusal by the German company to renew the distribution agreement that had existed between the two. In the conflict, BMW was represented by the Venezuelan Law Firm of Torres Plaz & Araujo.

In 1999, BMW had advised its distributor of the possibility of severing their commercial relations due to the breach by the latter of several clauses of the distribution agreement. Once the advance notice period granted to the authorized distributor in Venezuela had lapsed in May 2000, and as the breaches had not been remedied, BMW informed CorporaciÛn Eurocars of its decision not to renew the distribution agreement.

In order to challenge the non-renewal of the agreement, CorporaciÛn Eurocars brought legal action against BMW, upon the basis of a series of claims...

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