Supreme Court: Non-competition clause cannot stifle entrepreneurs

The Supreme Court ruled that non-compete clauses can apply to individual entrepreneurs after contract termination, provided they are not excessively restrictive. In a case involving a construction contractor, the court upheld a three-year non-compete agreement, emphasizing that such clauses must be proportionate and not hinder the contractor's ability to earn a living. The court noted that if the clause was mutually agreed upon without abuse of power, it could remain valid. The contractor had initially been fined €20,000 for breaching the clause, but the appellate court found it overly burdensome. The Supreme Court's decision highlights the importance of balancing contractual freedom with fair business practices.