The French Competition Council fines an exclusivity purchase clause contained in a selective distribution agreement on the basis of both Art. 81.1 EC and French provisions (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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Juliette Goyer, Lauriane Lépine-Sarandi, The French Competition Council fines an exclusivity purchase clause contained in a selective distribution agreement on the basis of both Art. 81.1 EC and French provisions (NGK Spark Plugs), 21 July 2006, e-Competitions July 2006, Art. N° 12430

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