Article 54 of Law No. 2026-796, passed on 18 August 2026, established two such practices that restrict competition: repeated calls for bids and substantial reductions in order quantities during negotiations.
Although these measures are set out in a law titled ‘Emergency Law for Agricultural Protection and Sovereignty’, they have been incorporated into Article L. 442-1 of the Commercial Code and therefore do not apply solely to the agricultural sector.
Repeated bidding processes
Under Article L. 442-1, I, 6° of the Commercial Code, a party is liable for ‘subjecting a business partner to competitive bidding procedures or repeated calls for bids whose frequency or terms create a significant imbalance in the rights and obligations of the parties’.
Repeated calls for bids are not prohibited in and of themselves. It is only if the frequency or terms of these repeated calls for bids create a significant imbalance between the parties’ rights and obligations that the practice is objectionable.
The wording adopted remains fairly broad and will necessarily have to be assessed on a case-by-case basis.
Substantial reductions in orders during negotiations.
The second new provision is found in Article L. 442-1-II of the Commercial Code.
Following the first paragraph of this article, which concerns the abrupt termination of established commercial relationships, the August 18th law adds a second paragraph that penalises ‘the act of implementing a substantial reduction in the volume of orders placed with a business partner, including when such a reduction is temporary, if by its scale, unusual nature or circumstances, it is likely to compromise the balance of the established business relationship’.
Henceforth, a substantial reduction in order volumes during contract negotiations — even a temporary one — may be sufficient to hold the party responsible.
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