French supermarket chain Leclerc has won an appeal against a court decision ordering it to pay back “discounts” worth EUR23.3m (US$31.5m) to a group of suppliers.
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The case, against Leclerc’s purchasing arm Galec, had been brought by the French Treasury under a government clampdown on commercial practices between retailers and suppliers.
In 2005, a Paris court fined Leclerc ruling that Galec had breached French commercial law in receiving the discounts, paid retroactively by 28 suppliers, for commercial services it had not provided.
However, an appeal court in Versailles judged the Treasury’s action to be “inadmissible” because it was “in breach of the European Convention on Human Rights”.
However, the Treasury has decided to continue its action before the Court of Cassation, France’s highest court.
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By GlobalData
