Concept of unfair competition

EU regulation of unfair competition

The directive on commercial practices prohibits practices that are contrary to the requirements of professional diligence, materially distort the economic behaviour with regard to the product of the average consumer whom it reaches or to whom it is addressed. The directive in especially names misleading of consumers as an unfair commercial practice. The article 6 of the directive says:

Article 6
Misleading actions
1. A commercial practice shall be regarded as misleading if it contains false information and is therefore untruthful or in any way, including overall presentation, deceives or is likely to deceive the average consumer, even if the information is factually correct, in relation to one or more of the following elements, and in either case causes or is likely to cause him to take a transactional decision that he would not have taken otherwise:

(f) the nature, attributes and rights of the trader or his agent, such as his identity and assets, his qualifications, status, approval, affiliation or connection and ownership of industrial, commercial or intellectual property rights or his awards and distinctions;

There is no doubt that squatting on a trademark-like domain name can be therefore considered as unfair competition.