FAQs
Consumer protection
A merchant is billing at a higher price than the one advertised. Can the Competition Authority intervene?
No, the Competition Authority has no jurisdiction in this type of dispute.
Such conduct is indeed prohibited. However, it falls within the scope of consumer law rather than competition law.
The obligation to display prices and not to charge a higher price than the one advertised is regulated by Articles L.112-1 and L.112-2 of the Consumer Code.
To report unfair or misleading commercial practices as defined by the Consumer Code, depending on the situation, we recommend contacting:
- the National Consumer Mediation Service (Service national du médiateur de la consommation - SNMC);
- the Directorate for Consumer Protection (Direction de la protection des consommateurs);
- the Luxembourg Consumer Association (Union luxembourgeoise des consommateurs - ULC);
- the European Consumer Centre Luxembourg (Centre européen des consommateurs GIE Luxembourg - CEC) for disputes with traders in other EU countries;
- the Financial Sector Supervisory Commission (Commission de surveillance du secteur financier - CSSF) for disputes with banks or other professionals in the financial sector;
- the Supervisory Authority for the Insurance Sector (Commissariat aux assurances - CAA) for disputes with insurance companies;
- the Luxembourg Regulatory Institute (Institut luxembourgeois de régulation - ILR) for disputes with telecommunications or energy providers (telephone, internet, gas, electricity);
- the Grand-Ducal Police if the trader's actions are punishable under criminal law (e.g. physical violence).
A tradesman is distributing misleading or deceptive advertising. Can the Competition Authority intervene?
No, the Competition Authority has no jurisdiction in this type of dispute.
Such conduct is indeed prohibited. However, it falls within the scope of consumer law rather than competition law.
The ban on unfair commercial practices is governed by Articles L.122-1 et seq. of the Consumer Code.
To report unfair or misleading commercial practices as defined by the Consumer Code, depending on the situation, we recommend contacting:
- the National Consumer Mediation Service (Service national du médiateur de la consommation - SNMC);
- the Directorate for Consumer Protection (Direction de la protection des consommateurs);
- the Luxembourg Consumer Association (Union luxembourgeoise des consommateurs - ULC); or
- the European Consumer Centre Luxembourg (Centre européen des consommateurs GIE Luxembourg - CEC) for disputes with traders in other EU countries.
My phone operator is preventing me from switching provider. Can the Competition Authority intervene?
No, the Competition Authority has no jurisdiction in this type of dispute.
Such conduct is indeed prohibited. However, it falls within the scope of consumer law rather than competition law.
The ban on unfair commercial practices is governed by Articles L.122-1 et seq. of the Consumer Code.
To report unfair or misleading commercial practices as defined by the Consumer Code, depending on the situation, we recommend contacting:
- the National Consumer Mediation Service (Service national du médiateur de la consommation - SNMC);
- the Directorate for Consumer Protection (Direction de la protection des consommateurs);
- the Luxembourg Consumer Association (Union luxembourgeoise des consommateurs - ULC);
- the European Consumer Centre Luxembourg (Centre européen des consommateurs GIE Luxembourg - CEC) for disputes with traders in other EU countries;
- the Luxembourg Regulatory Institute (Institut luxembourgeois de régulation - ILR) for disputes with telecommunications or energy providers (telephone, internet, gas, electricity).
A merchant has sent me a free product but is now demanding payment. Can the Competition Authority intervene?
No, the Competition Authority has no jurisdiction in this type of dispute.
Such conduct is indeed prohibited. However, it falls within the scope of consumer law rather than competition law.
The ban on unfair commercial practices is governed by Articles L.122-1 et seq. of the Consumer Code.
To report unfair or misleading commercial practices as defined by the Consumer Code, depending on the situation, we recommend contacting:
- the National Consumer Mediation Service (Service national du médiateur de la consommation - SNMC);
- the Directorate for Consumer Protection (Direction de la protection des consommateurs);
- the Luxembourg Consumer Association (Union luxembourgeoise des consommateurs - ULC);
- the European Consumer Centre Luxembourg (Centre européen des consommateurs GIE Luxembourg - CEC) for disputes with traders in other EU countries.
My insurance company is asking me for a disproportionate amount of documentation before paying out. Can the Competition Authority intervene?
No, the Competition Authority has no jurisdiction in this type of dispute.
Such conduct is indeed prohibited. However, it falls within the scope of consumer law rather than competition law.
The ban on unfair commercial practices is governed by Articles L.122-1 et seq. of the Consumer Code.
To report unfair or misleading commercial practices as defined by the Consumer Code, depending on the situation, we recommend contacting:
- the National Consumer Mediation Service (Service national du médiateur de la consommation - SNMC);
- the Directorate for Consumer Protection (Direction de la protection des consommateurs);
- the Luxembourg Consumer Association (Union luxembourgeoise des consommateurs - ULC);
- the European Consumer Centre Luxembourg (Centre européen des consommateurs GIE Luxembourg - CEC) for disputes with traders in other EU countries;
- the Supervisory Authority for the Insurance Sector (Commissariat aux assurances - CAA) for disputes with insurance companies.
Merger control
My company is looking at buying another company. Do I have to notify the Competition Authority about the merger/acquisition project?
No, Draft Law No. 8296 on the introduction of preliminary control of corporate merger operations into Luxembourg law has not yet been passed.
In the event of mergers, companies do not need to notify the Competition Authority.
However, in accordance with Regulation 139/2004 on concentrations, enterprises must notify the European Commission of the operation if their turnover is very high (worldwide turnover of all the companies concerned exceeding EUR 5 billion and Community-wide turnover of each of at least two of the companies exceeding EUR 250 million).
The Authority may however intervene:
- by referral to the European Commission in accordance with Article 22 of the Merger Regulation, so that it can examine any operations that affect trade between Member States and that are likely to significantly affect competition in Luxembourg; and/or
- after the merger operation, if it leads to abuse of a dominant position.
State aid
The State has granted aid to my competitors and I feel it is harming my company by disrupting competition. Can the Competition Authority intervene?
No, the Competition Authority has no jurisdiction when it comes to State aid at national level, even if it can disrupt competition.
The Authority can only assist the European Commission to control foreign subsidies (from non-EU countries) that distort the functioning of the domestic market.
Companies affected by Luxembourg State aid can contact the General Directorate - State Aid and Company Financing (Direction générale Aides d’État et financement aux entreprises) of the Ministry of the Economy, which has an obligation to notify the European Commission of any aid, so that the Commission can authorise or reject the payment.
Competition
I suspect a foreign company of breaking competition law and its behaviour is harming my company in Luxembourg. Can the Competition Authority intervene?
Yes, the Authority can pursue a foreign enterprise if the prohibited behaviour produces effects in Luxembourg.
Similarly, the national competition authority of another State can appeal to the Luxembourg Competition Authority for information and investigate a Luxembourg company suspected of infringing copyright law if its behaviour has effects in that other Member State.
To this end, the European Competition Network (ECN) enables cooperation and the exchange of information between authorities to understand the behaviour of companies across borders.
One of my competitors in a dominant position on the same market as me is offering customers discounts if they buy exclusively from them. Can the Competition Authority intervene?
Yes, a company in a dominant position on a market is infringing competition law if its pricing practices prevent customers from buying from other suppliers.
The company suffering damage can report this behaviour to the Competition Authority.
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