Noumea, December 23, 2025 —The Paris Court of Appeal has largely upheld a decision by the Competition Authority of New Caledonia finding that import exclusivity practices in the medical device sector restricted competition, while reducing the fine imposed on the sanctioned importer.
In a judgment issued on December 18, the court confirmed the decision adopted on August 29, 2022, rejecting an appeal brought by Médi-Services, a New Caledonia-based importer and wholesaler of medical devices. The company had challenged both the authority’s refusal to grant an exemption and the level of the financial penalty.
Exemption rejected
The court endorsed the authority’s strict interpretation of Article Lp. 421-4 of the French Commercial Code, which provides a limited exemption from the general prohibition on import exclusivity under Article Lp. 421-2-1. It held that the exemption must be assessed with regard to the exclusivity arrangement as a whole and cannot be applied selectively to certain product categories covered by the same agreement.
It further confirmed that the exemption conditions are cumulative and that the burden of proof lies with the undertaking invoking them. While acknowledging the quality and usefulness of the services provided by Médi-Services — including storage, technical expertise, maintenance, and after-sales support — the court agreed that these services were not shown to result from the import exclusivity clauses, nor were those clauses proven to be indispensable to economic progress.
Competitive effects
The court upheld the finding that exclusive import practices restricted intra-brand competition between importers and wholesalers and, in the context of narrow and structurally uncompetitive markets, contributed to the creation or consolidation of monopolies for certain medical device brands.
It also confirmed that the practices reduced competitive pressure on prices, while noting that the resulting harm to the economy, although established, was limited in scope.
Fine reduced
While agreeing with the authority’s assessment that the practices were serious — particularly given their impact on the public health sector and access to essential goods — the court partially revised the sanction.
Taking into account the limited economic harm and several mitigating factors, including Médi-Services’ conduct during the proceedings and its limited bargaining power, the court found that a penalty equal to 70% of the statutory maximum was disproportionate. It therefore reduced the fine from CFP Franc 47.4 million (approximately $469,216) to CFP Franc 35 million ($346,468).
The remainder of the authority’s decision was upheld.
