[Master's Thesis] Agreements in restraint of competition in franchise agreements...

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NGUYEN THI THANH HUYEN

AGREEMENTS IN RESTRAINT OF COMPETITION IN FRANCHISE AGREEMENTS IN THE PERSPECTIVES OF VIETNAMESE AND EC COMPETITION LAW

SUPERVISORS:
Prof. Dr. Katarina Olsson
Dr. Le Net

1. Introduction
1.1 Research questions and purposes of this thesis

Competition is considered as one of the principles of the market economy where the freedom to business is acknowledged and the legal grounds for fair competition is set up. In practice, the establishment of fully worked-out competition law framework is significant for the development of the market economy. However, the deficiency of such framework in Vietnam adversely affects business activities. The subject regarding to research on agreements in restraint of competition in franchise agreements is chosen due to the economic effects of vertical franchise agreements towards the economy. As the franchising concept is a recent transplant into Vietnamese legal system and Vietnam has only recently received formal legal recognition in the Commercial Law which came into effect in 2006, research on agreements in restraint of competition in franchise agreement is still not mentioned in many aspects. In franchise agreements, the agreements with indication to breach competition law constitute an indispensable part thereof. Therefore, in order to ensure a fair competition environment for franchise activities in the process of economic transition in Vietnam, research on franchise agreements in the perspective of competition law is an essential one.

By studying the topic “Agreements in restraint of competition in franchise agreements in the perspectives of Vietnamese and EC competition law”, the thesis aims to provide an in-depth knowledge about the application of competition law to franchise agreements in European Union as well as in Vietnam. The legal questions arising out of the application of competition law to franchise agreements are (i) whether franchise agreements with agreements in restraint of competition are prohibited and (ii) whether franchise agreements are entitled to any exemption as well as (iii) the conditions for granting such exemption. Through this research, the thesis will figure out different approaches between two legal systems mentioned above on agreements in restraint of competition in franchise agreements and try to explain the reasons thereof. Since Vietnamese competition law is still in its early stages, competition rules on agreements in restraint of competition do not cover all cases, for instance, the application of Vietnamese competition law to the franchise agreement irrespective of its specific characteristic. Therefore, through this research, the reception of EC experiences can be considered in order to improve Vietnamese competition law on the matter concerned. Such reception of foreign experiences shall be taken into consideration in conformity with legal conditions of Vietnam.

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