The French Competition Authority holds as anticompetitive an exclusive purchase clause in a selective distribution agreement (NGK Spark Plugs)

NGK Spark Plugs France (NGK France), one of NGK Japan's subsidiaries in the European Union, is the main supplier of plugs for two wheel vehicles in France. NGK France set up a selective distribution network in France based on a selective distribution framework agreement. It was argued that NGK France imposed retail prices on its distributors from 1997 to 2000 and that the exclusive purchase clause contained in the selective distribution agreement was aimed at compartmentalizing the market, thus being anticompetitive. In a decision dated 21 July 2006, the Conseil de la concurrence held that an illicit price fixing agreement under Article 81 of the EC Treaty and L.

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Authors

  • Simmons & Simmons (Paris)
  • Hewlett Packard (Boulogne-Billancourt)

Quotation

Ombline Ancelin, Charles Saumon, The French Competition Authority holds as anticompetitive an exclusive purchase clause in a selective distribution agreement (NGK Spark Plugs), 21 July 2006, e-Competitions July 2006, Art. N° 12414

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