{"id":3896,"date":"2025-07-15T13:29:06","date_gmt":"2025-07-15T10:29:06","guid":{"rendered":"https:\/\/pathlawfirm.gr\/en\/?p=3896"},"modified":"2025-09-16T09:39:25","modified_gmt":"2025-09-16T06:39:25","slug":"unfair-competition-client-poaching-greece","status":"publish","type":"post","link":"https:\/\/pathlawfirm.gr\/en\/unfair-competition-client-poaching-greece\/","title":{"rendered":"Client Poaching \u2013 Unfair Competition"},"content":{"rendered":"\t\t
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Unfair Competition and Client Poaching \u2013 Partner Liability for Breach of Fiduciary Duty<\/strong><\/h2>\n\n

Healthy competition is a cornerstone of the free market economy. However, one of the most common issues arising in corporate relationships is the poaching of a company\u2019s clients by one of its partners. The breach of contractual obligations by a partner for personal gain does not in itself automatically constitute unfair competition. Departing from a company to pursue a new commercial venture is not prohibited, and the same applies to individuals withdrawing from business partnerships. The issue arises when such departure is accompanied by conduct that undermines commercial loyalty.<\/p>\n\n

For a partner\u2019s breach of contract to be deemed unfair competition, additional specific circumstances must be present. Such circumstances include client poaching through strategic planning and the exploitation of the company\u2019s reputation.<\/p>\n\n

The Concept of Unfair Competition in Business Relationships<\/strong><\/h3>\n\n

According to the law on unfair competition, any act performed in a commercial, industrial, or agricultural context, which pursues competitive aims and contradicts good business ethics, is prohibited. The violator may be subject to legal action both to cease the act and to compensate for any resulting damages.<\/p>\n\n

The prohibitive rule described above requires three elements for application: (1) competitive conduct, (2) violation of good business morals, and (3) competitive intent, as interpreted through Articles 914 and 919 of the Greek Civil Code. Notably, the intent to harm a competitor is not necessary.<\/p>\n\n

Competitive behavior refers to actions carried out within the same or a similar industry. An act becomes unfair or unlawful when it offends good business ethics.<\/p>\n\n

In the context of unfair competition law, \u201cgood business ethics\u201d should not be understood merely as reflecting social or moral norms, but rather as shaped by the economic and market conditions at play, weighing the conflicting interests involved. Protection extends beyond the individual interests of competitors to also include consumer interests and, ultimately, the proper functioning of the market itself (see Supreme Court Decisions No. 659\/2023 and No. 1336\/2022).<\/p>\n\n

A breach of contractual obligations motivated by competitive goals is not automatically deemed unfair. To be considered unfair, special circumstances must exist which render the breach improper. Such circumstances may include deliberate planning to poach clients\u2014clients being a key business asset\u2014or the exploitation of another\u2019s reputation or internal infrastructure (see Supreme Court Decision No. 483\/2021).<\/p>\n\n

The Position of the Courts<\/strong><\/h3>\n\n

These principles were recently reaffirmed by the Hellenic Supreme Court (Areios Pagos). Specifically, the Court overturned a ruling of the Court of Appeals that had dismissed a claim as legally unfounded.<\/p>\n\n

The case involved a business dispute between a partner in a general partnership (O.E.) and a former partner. The claimant O.E. alleged that the former partner, through a coordinated plan, had unfairly targeted the company\u2019s reputation and client base. The aim was to start a separate business operation via her husband, thereby misappropriating the entirety of the company\u2019s clientele.<\/p>\n\n

The O.E. argued that the defendant:<\/p>\n\n