Effective

Defense in the

Competition law.

Competition law disputes and cease and desist letters mean trouble for companies. Our experienced team of specialized lawyers will provide you with competent support in defending against competition law claims.

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Challenges due to competition law claims

Cease and desist letters under competition law often present companies with major challenges. In addition to the legal aspects of competition law, the economic impact of such cease and desist letters must also be carefully examined. Competition law claims are not always clear-cut, as such cease and desist letters often suggest.

In cases involving unfair competition or misleading advertising, the question often arises as to whether these actually infringe competitors’ laws and justify the alleged claims. Advertising measures or statements often leave room for interpretation. An alleged infringement of information obligations often does not justify all the claims asserted. Allegations of breaches of special statutory regulations, such as food or drug advertising law, can also be qualified or even invalidated under certain circumstances.

There is therefore often a realistic chance of successfully defending against such claims. Even if an anti-competitive act is assumed, the asserted claims can be challenged in whole or in part or a counter warning can be issued.

Competition law claims

A competitor who discovers an infringement of competition law has various claims that they can assert with a cease and desist letter or as part of a legal dispute in court. These can vary depending on the type of infringement, but typically include the following claims:

Injunctive relief:
Injunctive relief serves to effectively prevent further acts of infringement. The competitor can demand that the infringement of competition law be stopped immediately. This is often done by means of a cease and desist letter in which the infringement is set out and a cease and desist declaration is demanded. This claim is fulfilled out of court by submitting a cease-and-desist declaration with a penalty clause.
Removal claim:
The removal claim enables a competitor to demand the removal of anti-competitive acts. This can include, for example, the removal of misleading advertising or the removal of products that violate competition law provisions.
Claim for damages:
With the claim for damages, the competitor can demand compensation if the infringement of competition law has led to demonstrable damage. This may include loss of profit or other financial losses.
Information and accounting claims:
The information and accounting claim serves to determine and quantify the damage and provide information about suppliers and customers. The infringer must provide detailed information on the type, scope, duration, turnover and profit from the infringement and render accounts. The infringer is obliged to provide supporting documents such as invoices, delivery bills and orders so that the information can be verified.
Destruction and recall claims:
The infringer must take precautions to prevent further infringements of competition law. The recall claim gives the competitor the opportunity to demand the withdrawal of unfair imitations and misleading advertising measures, thereby clearing the market. With the destruction claim, the injured party can demand the destruction of anti-competitive products or advertising material.
Reimbursement of costs of the cease and desist letter:
The competitor has a claim for reimbursement of costs against the infringer to the effect that, in the event of a justified cease and desist letter, he can demand reimbursement of the associated costs (e.g. lawyers’ fees, test purchase costs) from the infringer.

Effects of the claims

Competition law claims can have far-reaching consequences that many companies are often not immediately aware of when they are confronted with a cease and desist letter or a competitor’s claims. The consequences of such claims can be serious.

Recall and destruction costs:
Companies may be forced to recall and destroy products that have already been manufactured and distributed if they infringe the laws of a competitor. This not only leads to direct financial disadvantages, but can also significantly damage customer confidence.
Conversion costs:
If companies are forced to change the product due to injunctive relief and removal claims, this can entail considerable costs. Products, advertising materials and online presences that contain the disputed product must be changed or replaced. This is often associated with high costs and means that marketing investments that have already been made, such as those aimed at the unfair copycat product, are lost. In many cases, the company has to start with a completely new concept.
Business disruptions:
Disputes in connection with misleading advertising measures or unfair product imitations can tie up considerable resources, both financial and human, which can affect the company’s business activities and strategic direction.
Reputational damage:
Misleading advertising or unfair imitations can damage customer trust in the company. A damaged reputation can have long-term effects on customer loyalty and image perception.
Information and invoicing:
The information to be provided to the competitor may be very extensive and include the disclosure of business relationships as well as the submission of invoices and other internal documents. This can have a negative impact on business relationships in the long term, especially if commercial customers are also the target of the claims, who in turn then assert recourse claims, which can lead to further legal and economic consequences.
Legal costs and claims for damages:
The company could be obliged to pay damages to the competitor who has been harmed by the unfair practices or products. In addition, the defense against cease and desist letters or lawsuits can result in considerable lawyer and court costs.
Recall and destruction costs:
Companies may be forced to take back and destroy products or advertising materials that have already been manufactured and distributed if they infringe the laws of a competitor. This not only leads to direct financial losses, but can also significantly damage customer confidence.

Received a cease and desist letter?

How to react

You are best advised to

cease and desist letter!

A cease and desist letter, e.g. for infringement of competition law, industrial property rights or copyright, should always be taken seriously, as it can have considerable legal and financial consequences.

Timely and professional advice is crucial in order to minimize risks and develop the right strategy.

Check cease and desist letter: Have the cease and desist letter legally checked. Not every cease and desist letter is justified, formally correct and abusive cease and desist letters are unlawful.
Observe the deadline: Be sure to respond within the set deadline to avoid further legal action such as an injunction or a lawsuit.
Check the cease-and-desist declaration: Do not sign a pre-formulated cease-and-desist declaration without legal advice. It could be too far-reaching and lead to considerable and lasting disadvantages. Once a cease-and-desist declaration has been signed, it is almost impossible to get rid of it and can result in considerable follow-up costs in the form of high contractual penalties.
Strategy: Regardless of whether the cease and desist letter is justified or not, you should consider the right strategy for responding to the cease and desist letter with professional support. Many aspects play a role here. For example, there may be formal errors or the submission of a cease-and-desist declaration may involve incalculable risks.

How we defend our clients against
competition law claims

First of all, we examine whether and to what extent the competition law claims actually exist. In doing so, we evaluate the defense options and work out the legally and economically most sensible alternative courses of action for you. We then develop targeted strategies for the best possible defense against the asserted claims. If a defense does not appear possible, we will develop an approach to limit the economic consequences in the best possible way. To this end, our law firm offers a range of services specially tailored to the defense against competition law claims and cease and desist letters:

Examination and analysis:
We analyze the justification of the claims made against you and examine whether there is an actual infringement of competition law.
Strategic advice:
Based on our analysis, we develop a tailor-made defense strategy to defend against claims in the best possible way.
Negotiation with the other party:
We take over the communication with the cease and desist letter in order to reach an out-of-court settlement and represent your interests in the best possible way.
Preparation of protective briefs:
In the event of impending interim injunctions, we prepare protective briefs in appropriate cases in order to prevent the issue of an interim injunction without an oral hearing.
Representation in court:
In the event of a legal dispute, we will represent you competently in court.

Our expertise – your advantage

Our law firm has many years of expertise in the field of competition law, both in court and out-of-court proceedings. We understand the various approaches to defense in order to achieve the best economic result for you. Our specialized lawyers combine in-depth legal knowledge with practical solution strategies to successfully handle even complex disputes. This benefits you:

Legal expertise:
Through continuous training and a close exchange within our professional network, we ensure that we are always up to date in the field of competition law and closely follow current developments.
Experience in courts nationwide:
We have many years of expertise in representing clients in court proceedings nationwide. Thanks to our extensive experience with the jurisdiction of the courts, we are able to represent our clients effectively.
Individual support:
We provide you with individual support and develop customized solutions that are precisely tailored to your needs and industry-specific features.
Success-oriented action:
Our aim is to consistently defend against unjustified claims and, in the case of justified claims, to enforce the best economic solution for you.