Economic Dependence in Belgium

Introduction

Foreign companies investing or operating in Belgium may sometimes face economic dependence on a key customer, supplier, or strategic partner. Such situations create legal risks if the other party abuses its position. Understanding Belgian and EU rules helps you protect your contracts and commercial relationships.

1. What is economic dependence?

Economic dependence occurs when a company is particularly vulnerable to a critical partner. Examples include:

• High revenue concentration with a single client
• An indispensable supplier of key goods or services
• A strategic partner whose decisions directly affect your operations

Dependence itself is not illegal, but it increases the risk of abuse.

2. Legal framework in Belgium and Europe

Belgium

Article II.56 of the Belgian Code of Economic Law prohibits abuse of economic dependence. It targets situations where a partner exploits a company’s vulnerability to impose unfair or coercive conditions.

Europe

Article 102 TFEU regulates abuse of a dominant market position. While economic dependence is not classical dominance, abusive practices can be sanctioned if they hinder competition or unfairly exploit a partner.

3. Examples of abusive practices

• Imposing unbalanced contract clauses
• Delaying payments or refusing essential goods
• Forcing excessive discounts or commitments
• Restricting cooperation with other partners (abusive exclusivity)

4. How to protect yourself

• Diversify clients and suppliers to reduce dependence
• Draft balanced contracts with protective clauses
• Document business relationships for proof if abuse occurs
• Consult a specialized lawyer to identify risks and plan mitigation strategies

Conclusion & Call to Action

Economic dependence is a real risk for foreign companies in Belgium. Legal prevention can secure your relationships and reduce litigation risk. For a personalized contract and risk audit, contact Iustica.be, your trusted legal partner in Belgium.