The French Competition Authority fines an exclusivity purchase clause contained in a selective distribution agreement based on both article 81.1 EC and national competition law (NGK Spark Plugs)

In its decision issued on 21 July 2006, the French Competition Council fined NGK Spark Plugs France (hereinafter “NGK France”), a French subsidiary of NGK Japan, active in the French market for spark plugs for two-wheel vehicles, for breach of both article 81 of the EC treaty and its French equivalent. This decision is interesting in various respects. The first notable point regards the effect on trade concept. In examining the selective distribution network of NGK France, the Council noted that the distribution agreement only concerned French distributors and covered solely the French territory. However, quoting the Commission's guidelines on the effect of trade concept, the Council recalled that “vertical agreements covering the whole of a

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Authors

  • Juliette Goyer Avocat (Paris)
  • French Competition Authority (Paris)

Quotation

Juliette Goyer, Lauriane Lépine, The French Competition Authority fines an exclusivity purchase clause contained in a selective distribution agreement based on both article 81.1 EC and national competition law (NGK Spark Plugs), 21 July 2006, e-Competitions July 2006, Art. N° 12430

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