Legal shocker: Non-competes for outlet tenants invalid

Legal shocker: Non-competes for outlet tenants invalid

Published at: 2018-04-13 10:39 | Author:
In what retail landlords will find an unnerving ruling, the Czech anti-monopoly office has decided that Fashion Arena Prague Outlet's should not be allowed to prevent tenants from opening stores in other outlet centers. It ordered the outlet's operator FAOC to inform all of its tenants that the contract items concerning a ban on leasing space in competing projects were invalid.

"We're glad that the office has found that concluding contracts with items that limit stores from trading on the open market is illegal and that it's intervened against the practice," said Martin Kubišta, director of The Prague Outlet, which is due to open in May near the Václav Havel International Airport. FAOC was also fined CZK 1m.

Fashion Arena's director Lenka Čapková says her company will not accept the finding and will fight it, claiming that it contains formal mistakes and that it goes against common practice in Europe.

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