The part played by multinational companies in a country's economy is often described in terms of dependence. If a nation is experiencing growth difficulties and has a weak market, almost inevitably that nation opens its doors to foreign companies, which, once they gain a foothold, tighten their grip. At first sight, this situation can be fairly convincingly applied to the French electricity industry. For France, in fact, had to rely on patents and capital from international groups in order to launch and maintain this sector. But a deeper analysis is needed, since these generalisations ignore the attitude of French business generally and attribute to all multinationals the same intentions and power, whereas there are important differences between them.

1880–1919: three waves of foreign investment

The French electricity industry was characterised by foreign investment. There was an American presence – most notably through the agencies of the Compagnie Continental Edison (CCE), Thomson–Houston and S. A. Westinghouse. The Swiss operated in France through Alioth and a French company – Compagnie Electro-Mécanique (CEM) – re-acquired by Brown Boveri. The German participation, although smaller, was felt mainly through the Société Française AEG and the Société d'Electricité de Creil. Empain, Ericsson and Philips also owned French subsidiaries. But this sizeable foreign involvement in electricity did not necessarily imply domination of it. The earlier multinational companies arrived in France, the more they had to rely substantially on local assistance.