Latham Secures Final Victory for Orange Against SFR on Fixed Telephony Offers for Second Homes

Latham & Watkins, alongside its client Orange, has won an important victory in a decision handed down on October 18, 2023, by the Commercial Chamber of the Paris Court of Cassation. The court rejected the appeal lodged by SFR concerning alleged anti-competitive practices by Orange on fixed telephony offers for second homes and dismissed SFR's case in its entirety.

SFR accused Orange of abusing its dominant position in the fixed telephony market for vacation homes, and brought the case before the Paris Commercial Court in 2012. According to SFR, Orange's "second homes" offer could not be replicated without loss by an as efficient alternative operator, given the tariffs offered by Orange on the upstream wholesale market (regulations require Orange, as the incumbent operator, to provide access to its network).

After 11 years of proceedings, three appeal court rulings and three cassation rulings, the Paris Court of Cassation followed the referral ruling, holding that no abusive practice could be found, and that Orange's commercial practice did not constitute a "margin squeeze" practice constituting an abuse of a dominant position. Following this decision, Orange secures the recovery of the €53.4 million paid back by SFR during the appeal.

The Latham team was led by Paris partner Adrien Giraud, with associate Laure Maes.