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The Portuguese Competition Authority prohibits vertical restraints in the coffee distribution sector and imposes a fine of € 1.000.000 (Nestlé Portugal)

The Portuguese Competition Authority (Autoridade da Concorrência), established by Decree-Law n° 10/2003, of January 18th, and hereinafter referred to as “PCA”), announced this April 27th 2006 that it has decided to fine Nestlé Portugal in € 1.000.000 for a violation of article 4 of the Portuguese Competition Law (Lei n.º 18/2003, of June 11, hereinafter “PCL”), national provision similar to article 81 EC Treaty. The facts The text of the decision is not yet known but a press release was delivered, in which some details were given. The said press release informs that under the coffee supply contracts entered into between Nestlé Portugal and restaurants, hotels and cafeterias the company imposed upon its clients non compete obligations in the form of exclusivity clauses in force since 1999 and

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Miguel Gorjão-Henriques, The Portuguese Competition Authority prohibits vertical restraints in the coffee distribution sector and imposes a fine of € 1.000.000 (Nestlé Portugal), 27 April 2006, e-Competitions April 2006, Art. N° 563

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