Arbitration and EU competition law

Eco-Swiss and the Paris Court of Appeal

The interaction of the provisions of EU competition law with the arbitral process has been the object of much debate. In particular, the question has arisen whether a state court may annul an arbitral award which does not comply with EU competition law. In a major decision in Eco Swiss v Benetton [1999] ECR I-3069 the ECJ held that EU competition law is part of the rules of public policy of the Member States within the meaning of art V(2)(b) of the New York Convention 1958. Thus, where a court of a Member State is faced with an application to annul an arbitral award which is contrary to EU competition law, the court must grant the application when its domestic procedural rules provide for the annulment of awards which fail to comply with national rules of public policy. On 18 November 2004, for the first time, the Paris Court of Appeal in Thalès Air Defence v Euromissile considered this issue in the light of the statements made by the ECJ in Eco Swiss. The case is discussed by Thierry Tomasi of Denton Wilde Sapte, Paris.