EU Law

The ongoing debate on the contractual or tortious nature of the action for damages arising from the abrupt termination of a long-standing business relationship continues to rage among legal scholars and before the courts.

Two recent decisions issued by the Cour de Cassation (French supreme Court) have indeed revived this controversy, which can have very concrete practical implications for business relationships between two companies, especially when they are established in different countries.

Whether the French regime under Article L. 442-1, II of the French Commercial Code may be invoked, the law applicable to the dispute, or the competent court to rule on the damage suffered – these are all questions faced by companies suffering from an abrupt termination of business relationships. And the answers may vary depending on the legal characterization of the action.

The European regulatory landscape on sustainability is entering a new phase. Following the adoption of the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, the European Commission introduced a legislative simplification package in February 2025, known as the “Omnibus” package, aimed at adjusting the scope and timeline of these landmark legislative acts.

Stated objective: Enhancing the competitiveness of European businesses while reducing their administrative burden, particularly for SMBs. According to European Commission estimates, the proposed measures could generate €6.3 billion in savings and unlock up to €50 billion in additional investments.

Regulation (EU) 2023/988 on General Product Safety (GPSR) entered into force on December 14, 2024. This new legal framework aims to strengthen consumer protection against growing risks associated with digitalization, new technologies, and the globalization of supply chains.

It introduces new obligations for economic operators and providers of online marketplaces while clarifying market surveillance mechanisms and the powers of national authorities.

On May 29, 2024, the European Commission unveiled the Artificial Intelligence Office aimed at “enabling the future development, deployment and use of AI in a way that fosters societal and economic benefits and innovation, while mitigating risks”.

This new Office will play a key role in implementing the European Artificial Intelligence Act, strengthen the development and use of safe and trustworthy artificial intelligence, and positioning the European Union as a leader in international discussions.

A provisional agreement has been reached between the European Parliament and the Council on the protection of the environment through criminal law.

This agreement relates to a proposal for a Directive, the aim of which is to improve the effective enforcement of criminal law and to combat the most serious environmental offenses which can have devastating effects on both the environment and human health.

France offers many advantages for businesses, in particular thanks to its central location in Europe, the 2nd largest market in the world, a well-trained workforce and one of the highest hourly productivity rates, an advantageous tax system, as well as an appreciable environmental protection.

The French Government has set up rules to screen foreign investments. This screening has not prevented a significant number of foreign projects from being authorized in 2022.

The French Government has recently been encouraging foreign investments in the industrial and green sectors.