The Judgment of the Court of Justice of the European Union of 19 October 2017 on the Spanish Regulation on Sales at a Loss

On 19 October 2017, in case C-295/16, the Court of Justice of the European Union established that the Spanish regulation on sales at a loss is contrary to EU law. In particular, the Court held that this regulation entails a general prohibition on offering or carrying out sales of goods and services below cost which is inconsistent with Directive 2005/29/CE of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market. Additionally, the Court declared that the extension of this prohibition of sales at a loss to wholesaler trade would also be inconsistent with EU law.

In practice, the ECJ Judgment entails the disapplication of Article 14 of Law 7/1996, on Retail Trade Regulation and the equivalent provisions of regional laws.

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For further information, please contact:

Pilar Igartua
Uría Menéndez Madrid
Tel: +34 91 586 03 72