Competition authorities and courts around the globe generally take the view that vertical restraints are typically less harmful to competition than horizontal agreements, and may provide substantial scope for efficiencies. This does not mean that vertical agreements are always positive for consumers and for the marketplace. Usually, competition concerns may arise in case there is (...)
Exclusive distribution
Unilateral Practices
The UK Competition Authority investigates a Big Tech company over suspected anti-competitive behaviour (Apple App Store)
CMA investigates Apple over suspected anti-competitive behaviour*
The CMA has launched an investigation into Apple following complaints that its terms and conditions for app developers are unfair and anti-competitive.
In addition to designing, manufacturing and marketing electronic devices (...)
Anticompetitive practices
The Czech Competition Authority fines a wholesale distributor of pet foods for concluding long-term anticompetitive agreements with its purchasers (Noviko)
SUPPLIERS ARE FORBIDDEN TO SET FIXED RETAIL PRICES; NOVIKO WAS FINED ALMOST CZK 48 MILLION*
The Office for the Protection of Competition (hereinafter referred to as “the Office”) imposed a fine of CZK 47,775,000 on the undertaking NOVIKO s.r.o. (hereinafter referred to as "NOVIKO") for the (...)
The French Competition Authority fines a bakery equipment manufacturer and its network of distributors for price fixing (Bongard / Euromat)
Several entities sanctioned in bakery equipment distribution sector*
Distribution of bakery equipment: The Autorité de la concurrence fines Bongard and the Bongard Dealers’ Association for price fixing. It also fines these same entities and the Euromat purchasing office for practices that (...)
The Polish Competition Authority fines a bike distributor for imposing exclusive distribution agreements on dealers (Merida Bicycles)
A fine of almost pln 2.5 million pln for Merida Polska* For 6 years, the Merida company prohibited its distributors to sell bikes online. As a result, the market has been divided and consumers’ capabilities have been limited only to choosing the nearest traditional stores. President of UOKiK (...)
The French Competition Authority fines a group of companies and two wholesale importers for maintaining exclusive import rights in French Guiana and Guadeloupe (Arvitis group / Sodis Chrismay / Sodipa)
Canard-Duchêne champagnes: Several Arvitis group companies and two wholesale importers fined for maintaining exclusive import rights*
Canard-Duchêne champagnes: The Autorité de la concurrence fines several Arvitis group companies and two wholesale importers for maintaining exclusive import (...)
The New Caledonian Competition Authority imposes sanctions on a company over an exclusive import agreement in the importation and distribution of electronic cigarettes (NSVI)
The Autorité sanctions an exclusive import agreement in the sector of import and distribution of electronic cigarettes*
In a decision of March 1, 2023, the Autorité sanctions the company New Smart Vibes Import (NSVI) for having benefited from exclusive import rights on disposable electronic (...)
The US FTC along with 10 State partners sues two pesticide producers for employing an illegal pay-to-block scheme inflating prices for farmers (Syngenta / Corteva)
FTC and State Partners Sue Pesticide Giants Syngenta and Corteva for Using Illegal Pay-to-Block Scheme to Inflate Prices for Farmers*
Complaint alleges that manufacturers pay distributors to exclude competitors’ more affordable generic options for essential farming products
The Federal (...)
The Danish Competition Authority adopts a decision concerning market sharing between members of an association of undertakings in the market for home textiles (Boligtextilbranchens Indkøbsservice)
The Danish Competition Council has adopted a decision concerning market sharing between members of an association of undertakings*
On June 22 2022 the Danish Competition Council (DCC) adopted a decision concerning Boligtextilbranchens Indkøbsservice A.M.B.A. (Botex). In the decision, it is (...)
The Australian Competition Authority brings an action against a payment services giant alleging that it conducted exclusive dealing agreements (Mastercard)
What you need to know The Australian Competition and Consumer Commission has commenced proceedings against Mastercard, alleging it misused its market power and engaged in exclusive dealing, in contravention of the Competition and Consumer Act 2010 (Cth) (CCA). Mastercard allegedly engaged in (...)
The Canadian Competition Authority takes action for the protection of car-sharing services nation-wide (Turo)
Competition Bureau takes action to protect competition for car sharing services in Canada*
Car sharing platform Turo terminates problematic exclusivity policy in Canada in response to Bureau investigation
The Competition Bureau announced today that following an investigation, Turo Inc. has (...)
The Australian Federal High Court fines an ice cream production company $12M for exclusive dealing (Peters)
The Federal Court has ordered Australasian Food Group, trading as Peters (’Peters’), to pay a $12 million penalty after the ACCC alleged, and Peters admitted, that its exclusive distribution agreement with PFD Food Services (’PFD’) had the likely effect of substantially lessening competition. (...)
The Austrian Supreme Court denies that a licensor infringed Article 101 TFEU as defendant on the grounds that intention to seal off national markets was unproven (Sky)
In its judgment of 25 January 2022, the Austrian Supreme Court granted a request by Sky, a pay-tv provider holding an exclusive licence for the broadcasting of UEFA Champions League football matches in Austria, to prohibit an inn in Austria from showing such games via a third-party pay-tv (...)
The French Competition Authority fines a champagne company for setting up an exclusive import agreement in La Réunion contrary to the Lurel Act (Cattier)
Distribution in La Réunion: Cattier company fined for setting up an exclusive import agreement on the distribution of its champagne in La Réunion*
Background
Following a report sent by the French Minister of Economy (DGCCRF), the Autorité de la concurrence established that the Cattier (...)
The Polish Competition Authority initiates proceedings against a cleaning supplies and devices company and a bicycle retailer for restricting competition (Kärcher) (Merida bicycles)
In July, the Polish Competition Authority (UOKiK) announced the initiation of a preliminary investigation and the fact that they conducted an inspection at the premises of Kärcher. The UOKiK suspects that Kärcher imposed minimum resale prices on distributors selling its professional line of (...)
The EU Commission and UK Competition Authority propose modifications to their antitrust rules on distribution agreements which diverge significantly, creating legal challenges for agreements caught by both sets of rules
1. Summary
The European Union and the United Kingdom have each proposed modifications of their antitrust rules on distribution. The proposals diverge significantly on common distribution practices, creating legal challenges for distribution agreements caught by both sets of rules. Dual (...)
The Indian Competition Authority opens an investigation into potential anti-competitive conduct by a company engaged in the manufacturing and sale of commercial vehicles (Tata Motors)
KEY POINTS
Even if there is a delay in the filing of information on behalf of the informants, the Act does not envisage any period of limitation as inquiries conducted by CCI are proceedings in rem. There can be no limitation period in competition law as in a changing and evolving market (...)
The Turkish Competition Authority imposes an administrative monetary fine on a major paint supplier for resale price maintenance and exclusive distribution (DYO)
This case summary aims to shed light on the Turkish Competition Board’s (“Board”) DYO Decision, whereby the Board imposed an administrative fine of TL 21,036,866.58 to DYO Boya Fabrikaları Sanayi ve Ticaret A.Ş. (“DYO”), a major paint supplier in Turkey, on the ground that DYO has violated (...)
The Chinese State Administration for Market Regulation and Shanghai SAMR issue two administrative decisions punishing two Internet platform companies for engaging in “either-or choice” practices on their in-platform merchants (Alibaba / Shanghai Food Paishi Trade Development)
A few days ago, the State Administration for Market Regulation (“SAMR”) and Shanghai Administration for Market Regulation (“Shanghai AMR”) successively issued two administrative decisions punishing two Internet platform companies for engaging in “either-or choice” practices (a type of (...)
The Australian Competition Authority allows Japanese vehicle manufacturer’s exclusive dealing notification relating to its 10-year conditional warranty to stand (Mitsubishi)
Mitsubishi’s 10-year conditional warranty allowed to stand*
The ACCC does not object to an exclusive dealing notification lodged by Mitsubishi Motors Australia Limited (Mitsubishi) relating to its new 10-year or 200,000 km extended warranty. The warranty is conditional on the vehicle being (...)
The French Competition Authority fines a champagne supplier and distributors for maintaining exclusive import agreements (Nicolas Feuillatte / Financière Martin / Distillerie Dillon)
In a decision published on 29 October 2020, the French Competition Authority (“FCA”) fined champagne supplier Champagne Nicolas Feuillatte and two importer-distributors € 642,800 for having concluded exclusive import agreements in the French Antilles (i.e., Saint-Martin, Saint- Barthélemy and (...)
The French Competition Authority fines a champagne company and two importer-distributors for maintaining exclusive import agreements in the French Antilles (Nicolas Feuillatte / Financière Martin / Distillerie Dillon)
Nicolas Feuillatte champagne and two importer-distributors fined for having maintained exclusive import agreements in the French Antilles* Background
Following a report sent by the French Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF), the Autorité (...)
The US District Court for the Southern District of New York terminates long-standing Paramount consent decrees, thereby allowing after 7 decades the classic movie studios to form closer agreements with movie distributors (Paramount Pictures)
Federal Court Terminates Paramount Consent Decrees*
A federal court in the Southern District of New York today terminated the Paramount Consent Decrees, which for over seventy years have regulated how certain movie studios distribute films to movie theatres. The review and termination of (...)
The Romanian Competition Authority releases for public consultation the new guide on vertical agreements
The Competition Council Launches for Public Debates the Guide on Vertical Agreements*
The Competition Council elaborated the "Guide on vertical agreements" in order to support companies that have to assess, on a case-by-case basis, the compatibility of the vertical agreements they wish to (...)
The Paris Court of Appeal provides guidance in the context of an action for damages related to anti-competitive practices in the telecommunications sector (Orange Caraïbe / Digicel)
On 17 June 2020, the Paris Court of Appeal (Court) delivered its judgment (Orange judgment) in which it ordered Orange to pay EUR 249.5 million (EUR 181.5 million in damages plus EUR 68 million in interest) to Digicel Antilles and Guyana, following the implementation by the former of a number (...)
The Paris Court of Appeal rejects an appeal against a follow-on damages claim by a rival telecommunications provider and grants a reduction in the amount of damages to be paid (Orange / Digicel)
On 17 June 2020, the Paris Court of Appeal rejected Orange’s (formerly known as France Telecom) appeal against a follow-on damages claim by rival telecommunications provider Digicel (formerly known as Bouygues Telecom) but granted a reduction in the amount of damages to be paid of nearly € 100 (...)
The EU Commission publishes a report on the vertical block exemption regulation and the accompanying guidelines on vertical restraints
On 25 May 2020, the European Commission (“Commission”) has published its Final Report of the support studies for the evaluation of its Vertical Block Exemption Regulation (“VBER”) and the accompanying Guidelines on Vertical Restraints (the “Final Report”). The Final Report was published (...)
The US Court of Appeals for the Seventh Circuit clarifies whether a consumer who purchases from a distributor may hold a manufacturer liable for overcharges resulting from a conspiracy between the distributor and manufacturer in the passing on of a case between two healthcare providers (Marion Healthcare / Becton Dickinson & Company)
Introduction
In its recent decision in Marion Healthcare, LLC v. Becton Dickinson & Co., the Seventh Circuit added to the discussion among circuit courts as to whether and when a consumer who purchases from a distributor may hold a manufacturer liable for overcharges resulting from a (...)
The US Court of Appeals for the Seventh Circuit rules on the co-conspirator exception to the Illinois Brick rule against distributors in the healthcare market (Marion Healthcare / Becton Dickinson & Company)
The Seventh Circuit Explains the “Co-Conspiracy Exception” to the Illinois Brick Rule in Healthcare Antitrust Lawsuit*
Antitrust law evolves in such a way that opinions from federal appellate courts are always interesting in how they affect the doctrine. But there are a select few judges who (...)
The Turkish Competition Authority issues an opinion letter regarding its preliminary investigation of a manufacturer of ceramic and granite products for restricting the active and passive sales of its dealers and for forcing consumers to purchase products within their provinces (Qua Granit)
The Turkish Competition Board (“Board”) published its reasoned decision regarding its preliminary investigation pertaining to the allegations that Hayal Seramik Yapı ve Ürünleri San. Tur. ve Tic. A.Ş. (“Qua Granit”) violated Article 4 of the Law No. 4054 on the Protection of Competition (“Law (...)
The Belgian Competition Authority fines the national pharmacists order for taking disciplinary measures limiting the ability to advertise and apply rebates to para pharmaceutical products (Order of Pharmacists)
On 16 October 2019, the Belgian Competition Authority ("BCA") fined the national Order of Pharmacists €225,000 for taking disciplinary measures limiting the ability of pharmacists to advertise and apply rebates to parapharmaceutical products.
WHAT YOU NEED TO KNOW - KEY TAKEAWAYS The BCA’s (...)
The Turkish Competition Authority withdraws the individual exemption granted to an agreement containing exclusivity clauses in the on-trade beer market sector (Tuborg)
This case summary includes an analysis of the Turkish Competition Board’s (the “Board”) Tuborg decision (20.06.2019; 19-22/335-152) in which the Board withdrew Tuborg Pazarlama A.Ş.’s (“Tuborg”) individual exemption granted to its agreements containing exclusivity clauses with sellers such as (...)
The Indian Competition Authority fines pharmaceutical associations and companies for imposing anticompetitive conditions on their retailers (Madhya Pradesh Chemists and Distributors Federation / Madhya Pradesh Chemists and Druggist Association)
CCI imposes penalty on chemists and druggist associations in Madhya Pradesh and two pharmaceutical companies*
By way of order dated 03.06.2019, CCI imposed penalty on Madhya Pradesh Chemists and Druggist Association (“MPCDA”) and Indore Chemists Association (“ICA”) (collectively ‘chemists (...)
The Belgian Competition Authority fines a pharmaceutical company for implementing anticompetitive practices aimed at excluding another association of pharmacies from the market (Order of Pharmacists)
The Belgian Competition Authority ("BCA") fined the national Order of Pharmacists EUR 1 million on 28 May 2019, for the use of anticompetitive practices aimed at excluding the Medi-Market Group, an association of (para)pharmacies, from the market for pharmacy services. Previously, the market (...)
The Turkish Competition Authority persists in its assessment of exclusivity practices in a company’s dealership agreements on the sales of chicken, meat, and eggs (Abalıoğlu)
In a preliminary investigation in 2011 on the allegations that Abalıoğlu Yem Soya ve Tekstil A.Ş. (“ Abalıoğlu ”) had exclusivity clauses in its dealership agreements concerning the sales of chicken meat and eggs under “Lezita” brand, the Board had decided that Abalıoğlu had not violated the (...)
The Indian Competition Authority finds no violation in a cinema chain exclusively selling one beverage producer’s products (Inox / Coca-Cola)
CCI holds no violation in exclusive selling beverages of Coca-Cola by INOX Theatres at higher rates than the retail price*
The Competition Commission of India (“CCI/ Commission”) by way of order dated 28.02.2019 exonerated INOX Leisure Ltd (“INOX”) and Hindustan Coca-Cola Beverages Private (...)
The Egyptian Competition Authority decides to invalidate clauses between a Big Tech company and its distributors for exclusive agreements considered as restrictive (Apple)
Unofficial convenience translation: In case of any discrepancy in this translation the Arabic wording only would prevail.*
The Board of Directors of the Egyptian Competition Authority (“ECA”) has decided that Apple and its distributors have infringed the Egyptian Competition Law (“ECL”). The (...)
The Ankara Seventh Administrative Court annuls the Turkish Competition Authority’s dismissal decision regarding the restriction of parallel imports allegations faced by a company in the market of energy systems (Arti Marin / Mastervolt / Eltesan)
The Ankara 7th Administrative Court (“Court”) annulled the dismissal decision of the Turkish Competition Board (“Board”) concerning the allegations that Mastervolt International Holding B.V. (“Mastervolt”) and its exclusive distributor in Turkey, Artı Marin Elektrik Dış Tic. Ltd. Şti. (“Artı (...)
The Australian Federal Court fines three distributors of polycarbonate roof sheeting for exclusive dealing conduct (Palram / Ampelite / EGR)
Sweat deal for the ACCC*
In the Australian Competition and Consumer Commission v Oakmoore Pty Ltd cases,[1] the Federal Court declared, by consent, that Ampelite Australia Pty Ltd (Ampelite), Palram Australia Pty Ltd (Palram) and Oakmoore Pty Ltd (trading as EGR) had engaged in exclusive (...)
The EU Court of Justice holds that a restriction imposed on an authorised retailer not to sell goods through online third-party platforms does not constitute an infringement (Coty Germany / Parfümerie Akzente)
In its hotly anticipated ruling in the Coty case, the Court of Justice of the EU (CJEU) has held today that, in the context of a selective distribution system, a restriction imposed on an authorised retailer not to sell the goods through online third-party platforms does not infringe Article (...)
The EU Court of Justice deals a blow to the EU Commission’s power to close antitrust investigations with commitment decisions by ruling that they do not preclude national courts from examining whether agreements comply with antitrust rules (Gasorba / Repsol)
On November 23, 2017, the Court of Justice of the European Union (Court of Justice) dealt a blow to the European Commission’s (Commission) power to close antitrust investigations with commitment decisions, with its ruling in Case C-547/16 Gasorba et al. v. Repsol. The Court of Justice ruled (...)
The Turkish Competition Authority revokes an individual exemption granted to a major player in the beer market over exclusive distribution agreements (Tuborg)
The Turkish Competition Board’s (“Board”) decision dated 09.11.2017 and numbered 17-36/583-256 (“Decision on Revocation of the CPS Exemption”) reveals the changing structure of the Turkish beer market. With this decision, the Board revoked its individual exemption granted for the exclusive (...)
The Turkish Competition Authority publishes its reasoned decision regarding the preliminary investigation on the allegations that a white goods manufacturer restricted the online sales of its dealers (BSH)
This case summary includes an analysis of the Turkish Competition Board’s (“Board”) BSH decision (22.08.2017; 17-27/454-195). The Board reviewed the allegations put forward by Ersan Pazarlama Tic. Ltd. Şti. (“Ersan Pazarlama”) against BSH Ev Aletleri Sanayi ve Ticaret A.Ş. (“BSH”). The Board (...)
The Chinese NDRC proposes new rules to deal with perceived anti-competitive practices in the pharmaceutical industry
China proposes new rules to address perceived anti-competitive practices n the pharmaceutical industry*
On 14 August 2017, the National Development and Reform Commission (“NDRC“) released a draft of the Guidelines on Pricing Conduct by Business Operators for Drugs in Shortage and Active (...)
The Indian Competition Authority dismisses allegations of anticompetitive conduct against two film producers and two digital cinema service providers (K Sera Sera Digital Cinema / Pen India)
CCI closes case against the producers and presenters of ‘Kahaani-2’ with respect to alleged anticompetitive agreement*
CCI vide its order dated June 21, 2017dismissed allegations of contravention of Section 3 and 4 of the Act against Pen India Ltd., Bound Script Motion Pictures Pvt. Ltd., (...)
The Indian Competition Authority fines global automobile manufacturer for resale price maintenance and other anticompetitive conduct in markets for car manufacturing, spare car parts, and car repair services (Fx Enterprise Solutions India / Hyundai)
CCI penalizes Hyundai for resale price maintenance and tie-in*
The CCI vide its order dated June 14, 2017 imposed a penalty of INR 87 Crore (Rupees Eighty Seven Crores) on Hyundai Motor India Limited (‘HMIL’) for contravention of Section 3(4) read with Section 3(1) of the Act.
The (...)
The French Competition Authority adopts a settlement decision concerning a case involving companies active in the distribution of consumer goods overseas (Henkel)
Exclusive distribution of consumer goods in overseas territories – Settlement*
Within the framework of a settlement between all the parties, the Autorité de la concurrence fines Henkel and its wholesaler-importers in several overseas departments €600,000.
In brief The Autorité de la (...)
The Indian Competition Appellate Tribunal sends case of anticompetitive conduct against film distributors back to Indian Competition Authority for reconsideration (K Sera Sera Digital Cinema / Digital Cinema Initiatives)
Competition Appellate Tribunal (COMPAT) directs re-consideration by CCI against movie producers/ distributors for alleged cartelisation in setting unfair standards in cinema exhibition*
COMPAT, by its order dated December 8, 2015 reversed the order of CCI dated April 22, 2015 which closed a (...)
The French Competition Authority obtains commitments from several mainland alcohol manufacturers aiming to stop the exclusive distribution of their products in the French overseas territories (Pernod-Ricard)
Distribution of consumer goods in the French overseas territories*
The Autorité de la concurrence has obtained from several mainland manufacturers their commitment to put an end to the exclusive distribution of their products in the French overseas territories and to implement a competitive (...)
The Hellenic Competition Authority accepts commitments from petrol product suppliers regarding long term exclusive cooperation agreements with petrol stations (BP Hellas / Shell Hellas)
By its decision No. 602/11.08.2015, the Hellenic Competition Commission (the “HCC”) unanimously accepted the commitments offered by nine (9) petrol product suppliers, to cease presumed violations of Art. 1 L. 703/77 and Art. 101 TFEU. This decision (the “HCC decision”), which was the first HCC (...)
The Hungarian Competition Authority accepts commitments offered by the three largest Hungarian beer companies due to a finding of anticompetitive infringements from exclusive contracts (Heineken / Dreher / Borsodi)
The GVH intervened in the structure of the Hungarian beer market*
The Hungarian Competition Authority (Gazdasági Versenyhivatal – GVH) accepted the commitments offered by Heineken Hungária Sörgyárak Zrt. (Heineken), Dreher Sörgyárak Zrt. (Dreher) and Borsodi Sörgyár Kft. (Borsodi), as a (...)
The Hellenic Competition Authority accepts commitments proposed by nine fuel trading companies addressing non-compete obligations in long term exclusive commercial lease and cooperation agreement (Hellenic Fuels)
Acceptance of commitments by 9 fuel trading companies - addressing non-compete obligations in long term exclusive commercial lease and cooperation agreements in the retail fuel market (HCC 602/2015)
In February 2015 the HCC adopted a formal decision which rendered commitments proposed by (...)
The Portuguese Competition Authority fines €9 million for anticompetitive clauses in distribution contracts in the gas bottle market (Galp Energia)
On 3 February 2015, the Portuguese Competition Authority (PCA) announced that it had imposed fines of 9.29 million EUR on the Galp Energia group for anticompetitive practices in the gas bottle market in Portugal.
According to the PCA, Galp and its subsidiaries included in the large majority (...)
The Indian Competition Authority initiates an investigation concerning resale price maintenance in the e-commerce sector (Jasper Infotech / KAFF Appliances)
The CCI has in 2014 initiated two investigations into the alleged imposition of minimum resale price maintenance (RPM). The first one was against Hyundai Motor India Ltd (‘Hyundai Case’) and I had written on the legal standard adopted by the Competition Commission of India to initiate (...)
The Indian Competition Authority fines 14 car manufacturers for unilateral practices and anticompetitive agreements in the markets for spare car parts and car maintenance (Shri Shamsher Kataria / Honda Siel Cars India)
CCI penalizes 14 major Car Companies a penalty of INR 2544.64 Crores*
The CCI by way of order dated August 25, 2014 in Shri Shamsher Kataria Vs Honda Siel Cars India Ltd. & Ors. has imposed a total penalty of INR 2,544.65 crore at 2% of total turnover in India on the 14 major car (...)
The Indian Competition Commission pertains for the first time to the concept of ‘aftermarkets’ and discusses the interface between IPRs and competition law (Honda / Volkswagen / Fiat)
CCI Order on Car Manufacturers for Anti-Competitive Conduct*
Facts:
Information was filed under Section 19(1)(a) of the Competition Act, 2002 (“Act”) initially against 3 car manufacturers alleging anti-competitive practices on part of the opposite parties (“OPs”). OP1 to OP3 were involved (...)
The Competition Commission of India fines 14 automobile manufacturers for implementing anticompetitive and unilateral practices on the automobile spare parts and repair market (Shamsher Kataria / Honda Siel)
In the month of August, China fined 12 Japanese auto parts makers a total of over US$200 million for price fixing, the maximum amount imposed for violating the anti-monopoly law thus far. The National Development and Reform Commission (NDRC) stated that the companies were found to have (...)
The Italian Competition Authority launches an investigation into a suspected breach of Article 101 TFEU in relation to the supply of nutrition products for wellness and fitness (Enervit)
In November 2013, after receiving a complaint from a pharmacist and owner of a website for online retail shopping, the Italian Antitrust Authority (AGCM) has started a formal investigation on vertical restrictions of competition stemming from agreements between Enervit S.p.A. (Enervit), a (...)