How can I defend myself against unfair competitive measures by other companies?
January 16, 2023 | 40,00 EUR | answered by Chloé Schmitt
Dear lawyer,
my name is Verena Krebs and I have been running a small IT services company for two years. In recent months, I have increasingly noticed that a competitor in the industry is taking unfair measures against my company to lure customers away from me. This is manifested, for example, by targeted defamation of my company in social media, spreading false information about my services, and undercutting my prices.
These unfair competitive practices have already led to a significant decrease in my number of customers and revenues. I am very concerned about the existence of my company, as I do not know how to effectively defend against these measures. I have already tried to engage in dialogue with the competitor, but this has not led to a solution.
Therefore, I am asking you as an expert in corporate law, what legal options I have to defend myself against these unfair competitive measures. Are there legal steps I can take against the competitor? What measures can I take to protect my company from further harm? I would be very grateful for your help and support in this difficult situation.
Sincerely, Verena Krebs
Dear Verena Krebs,
Thank you for your inquiry and for placing your trust in my expertise in the field of corporate law. I am sorry to hear that your company is suffering from the unfair competitive measures of a competitor and has already experienced a decrease in revenue. It is important to act quickly and effectively in such cases to protect your company and avoid further damages.
First and foremost, I would like to emphasize that while corporate law is an important part of commercial law, in cases of unfair competition, competition law is also of great importance. Competition law regulates the behavior of companies in competition and aims to ensure fair market conditions.
In your case, the regulations on unfair competition under the Act Against Unfair Competition (UWG) could be particularly relevant. The UWG prohibits, among other things, misleading commercial practices, such as spreading false information about your services, as well as deliberate hindrances, such as undercutting your prices to poach customers. These violations can be pursued both civilly and criminally.
To defend against the unfair competitive measures of your competitor, you can take various legal steps. I recommend that you first collect all relevant evidence to prove your competitor's violations of the UWG. This could be done, for example, through screenshots of defamatory posts on social media or witness statements from affected customers.
You could then send a cease and desist letter to your competitor, demanding that they immediately cease the unfair competitive measures and provide a legally binding declaration to that effect. If your competitor does not comply with these demands, you could obtain an injunction or file a lawsuit in the appropriate court.
Furthermore, I recommend that you seek assistance from a specialized law firm that can support you in enforcing your legal rights. An experienced competition law attorney can provide comprehensive advice and help you develop the best strategy to defend your company.
I hope that my explanations are helpful to you and support you in your difficult situation. Please do not hesitate to contact me if you have any further questions or need my assistance. I am at your disposal.
Best regards,
Chloé Schmitt, Corporate Law Attorney
