The Swiss Competition Authority fines a German tobacco producer for a longstanding vertical distribution agreement which sought to secure absolute territorial protection (Pöschl)

Competition Commission penalises German tobacco company for territorial restrictions in distribution agreements* The Competition Commission (ComCo) has once again imposed penalties on a foreign company for including/maintaining absolute territorial protection clauses in its distribution agreements. This serves as a reminder that clauses which prohibit distribution outside the assigned territory – and thus potentially into Switzerland – apparently still exist in certain (mostly older) distribution agreements. These clauses should be promptly revised to avoid substantial penalties under Swiss competition law. Facts In its recent decision, [1] ComCo assessed whether the German company Pöschl, the world's largest producer of snuff and Germany's leading manufacturer

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