Selective Distribution: The French Competition Council imposes heavy fines on perfumers for wide ranging collusion on prices (Luxury Sector Perfumes)

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The Board heavily sanctions a broad price agreement in the luxury perfume sector

– Concordant Consent, Dec. 06-D-04 of March 13, 2006 on practices in the luxury perfumery sector ; press release of 14 March 2006 After yet another long decision (133 pages), the Council heavily sanctioned many companies in the luxury perfumery sector (suppliers and distributors jointly) for agreeing on the selling price of perfumes and cosmetics to the consumer. Each supplier fixed an "indicative price" for its distributors, as well as a maximum discount rate for each branded product, thereby preventing any price competition. The handling of the case is intended to be educational. The Board explains at length the cluster method it uses to demonstrate a price cartel. But we will proceed step by step, following the Board's arguments. The Council recalls that the distribution of luxury

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