French Antitrust Guidance: Balancing Green Initiatives and Fair Competition

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The French Competition Authority has issued a set of informal guidelines regarding the “ReUse” project, a national effort led by the eco-organization Citeo to standardize reusable food packaging in supermarkets. This intervention serves as a critical blueprint for how environmental sustainability must navigate the strict boundaries of antitrust law. While the Authority supports the ecological transition, it maintains that green objectives do not exempt companies from the prohibition of anti-competitive practices, stating that “the mere pursuit and achievement of reuse objectives cannot constitute efficiency gains of a nature to compensate for a possible restriction of competition.”

A primary area of concern for the regulator is the potential for market exclusion and the improper exchange of information. Because Citeo holds a dominant position, the General Rapporteur warned that the organization must not favor its own harmonized system to the detriment of independent reuse initiatives. Furthermore, the Authority emphasized that competing companies participating in the scheme must not coordinate their business strategies or share sensitive commercial data, such as individual cost structures, which could lead to illegal price signaling or cartel-like behavior.

To ensure the market remains dynamic, the guidelines recommend that the selection of service providers for the system—such as those handling washing, transport, and logistics—be based on “objective, transparent, and non-discriminatory criteria.” The Authority also advised against long-term contracts with heavy exit penalties, as these can trap participants and prevent more efficient or innovative competitors from entering the sector.

By providing this analytical framework, the Authority aims to foster a “circular economy” that is both environmentally effective and commercially fair. This guidance is part of an “open door” policy adopted in 2024, designed to help businesses self-assess their sustainability projects against complex competition rules. The case sets a significant precedent for international markets, illustrating that while collaboration is necessary for environmental progress, it must be structured to preserve the fundamental principles of a competitive marketplace.