The French NCA fines producers and retailers for vertical price-fixing agreements in the luxury perfume sector

The French Competition Authority (FCA) fined 13 luxury perfume companies and 3 national distribution chains for entering into vertical price fixing agreements. The fines total 46.2 million Euros. The French Competition Authority stated that the existence of an anticompetitive conduct was proved by the three following practices: Manufacturers' communicated to their retailers their suggested retail prices; They monitored retailers' compliance and threatened retaliation against those who failed to apply recommended retail prices, in particular by granting rebates conditional on compliance; Finally, retailers generally followed recommendations regarding manufacturers' suggested retail prices (MSRP). In some cases, the FCA could not gather enough evidence to prove the existence of

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David Spector, Antoine Chapsal, The French NCA fines producers and retailers for vertical price-fixing agreements in the luxury perfume sector, 13 mars 2006, Bulletin e-Competitions March 2006, Art. N° 517

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