The German Federal Court of Justice holds that discrimination between own stores and franchisees is not abusive (Praktiker)

Background Praktiker, one of the leading DIY groups in Germany and Europe, pursues a dual distribution strategy via company owned stores and (few) franchises. The franchise contracts foresaw an exclusive sourcing obligation pursuant to which the franchisees had to source their entire demand of DIY related goods with the central sourcing company of the Praktiker group. Praktiker's central sourcing allowed for considerable economies of scale. However, the discounts, bonuses and kick-backs Praktiker generated as a result of its central purchasing were only partly passed-on to its franchisees. Following a complaint by one of the franchisees, the German Federal Cartel Office (FCO), in May 2006, came to the conclusion that the combination of (i) the exclusive purchasing obligation and

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

  • Blomstein (Berlin)

Quotation

Max Klasse, The German Federal Court of Justice holds that discrimination between own stores and franchisees is not abusive (Praktiker), 11 November 2008, e-Competitions November 2008, Art. N° 24293

Visites 3804

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues