Market
12
Dec
2024
3
min read

Stop the press: in Tec Hut Ltd. vs The Broker Site case, court rules in favor of TBS in membership dispute

A few weeks ago, we covered the court case between Tec Hut Ltd. and The Broker Site. Today, December 12, 2024, the court has ruled in favor of TBS, dismissing all claims made by Tec Hut. The case, which involved the termination of Tec Hut’s membership with TBS and public warnings regarding their business practices, has ended with Tec Hut being ordered to cover TBS’s legal costs.

Case overview: Tec Hut vs TBS

The lawsuit filed by Tec Hut, a company that trades refurbished IT equipment, against The Broker Site B.V. (TBS), an online platform for IT equipment trading, revolved around two key issues. Tec Hut alleged that their membership was terminated unjustly, without proper notice, and in violation of contractual agreements and the Digital Services Act (DSA). Furthermore, Tec Hut objected to a May 2024 warning email sent by TBS, which cited customer complaints about Tec Hut’s low-quality products and unfulfilled orders.

Tec Hut’s claims and the court’s response

Tec Hut’s primary arguments included claims of unlawful termination of access, defamation, and damages. The company sought € 100,000 for reputational harm and loss of business caused by the public warning. However, the court found that TBS had followed its general terms of service, which allowed the platform to terminate access at its discretion. TBS also provided sufficient evidence, including a logbook of customer complaints, justifying the termination of Tec Hut’s membership.

Regarding the defamation claim, the court concluded that the warning email was factual and evidence-based, offering a measured approach to advising caution to other members without defaming Tec Hut. No rectification or damages were warranted in this case.

Digital Services Act and market dominance

Tec Hut also argued that TBS's actions violated the Digital Services Act (DSA). However, the court ruled that the DSA was not applicable, as the termination occurred before the law’s implementation in February 2024. Additionally, the court found no evidence that TBS abused a dominant market position or had a monopoly in the market.

The verdict: A clear decision in favor of TBS

In the end, the court dismissed all of Tec Hut’s claims, including their request for reinstatement to the platform, correction of the public warning, and the €100,000 damages claim. Furthermore, Tec Hut was ordered to pay € 6,388 in legal costs incurred by TBS. If these costs are not paid within 14 days, interest will be applied.

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