The French competition authority fines a spark plugs producer for exclusive dealing practices (NGK Spark Plugs)

The French Competition Authority (FCA) has fined € 300,000 NGK Spark Plugs France for a vertical agreement with its distributors involving an exclusive dealing provision. NGK Spark Plugs France is one of the main producers of spark plugs for motorcycles (two-stroke engines) in France. The FCA's decision follows two successive interim reports issued by the FCA in 2004 and 2005 respectively, in which four objections had been raised: The first objection concerned the communication of recommended prices and rebate rates by NGK Spark Plugs France to its distributors between 1997 and 2000. According to the FCA's interim report, it was akin to setting minimum prices and resulted in weakening competition by raising the net prices charged to wholesalers and retailers for (spare) spark plugs

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  • Compass Lexecon (Paris)

Quotation

David Sevy, The French competition authority fines a spark plugs producer for exclusive dealing practices (NGK Spark Plugs), 21 July 2006, e-Competitions Bulletin Exclusive distribution, Art. N° 12431

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