Case law

  • Case Details
    • National ID: 4 Ob 42/14a
    • Member State: Austria
    • Common Name:4 Ob 42/14a
    • Decision type: Supreme court decision
    • Decision date: 20/05/2014
    • Court: Supreme Court
    • Subject:
    • Plaintiff: Unknown
    • Defendant: Unknown
    • Keywords: advertisement, unfair competition
  • Directive Articles
    Unfair Commercial Practices Directive, Chapter 2, Article 5
  • Headnote
    Advertising initiatives in physical proximity to a competitor are admissible if they allow the targeted public to make a deliberate decision between the two offers in a balanced way and the competitor will not be impaired by targeted poaching of interested consumers or be prevented from presenting his own offers in an undisturbed manner and interested consumers are not hindered from a balanced benchmarking.
  • Facts
    Both the plaintiff and the defendant are producers of fire trucks in Austria.
    The father of the managing director of the defendant set up a flag pole on the property next to the business premises of the plaintiff. On the flag, fire trucks, the name of the defendant, the name of the defendant's managing director and the fact that he is the manager of the company are visible.
    The plaintiff applied for a preliminary injunction prohibiting the defendant from redirecting potential customers from the plaintiff's company to the defendant's company by means of the flag. They stated that the defendant's company is new on the market and therefore tries to actively poach their customers.
  • Legal issue
    The court did not regard the flag as an instance of unfair competition. The usage of advertising initiatives in physical proximity itself bears no indication for the intent to damage a competitor, even in direct proximity, as long as the potential customer has the possibility to make a balanced decision.
    Nobody is entitled to a space free from any competitors.
    Advertising initiatives have to be assessed and rules fair or unfair on a case-by-case basis. The defendant only uses objectively correct information on his flag and potential customers are not poached.
    Therefore, the defendant does not violate competition law.
  • Decision
  • Related Cases

    No results available

  • Legal Literature

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  • Result
    The application for a preliminary injunction was rejected.