On 20 December 2007, the French Competition Council (the “Council”) fined five manufacturers (Chicco - Puériculture de France, Goliath France, Hasbro France, Lego and MegaBrands) and three distributors (Carrefour France, EPSE-JouéClub and Maxi Toys France) for entering into vertical agreements to fix retail sale prices in the toy distribution sector. These practices took place over the Christmas periods in 2001, 2002 and 2003. Vertical price fixing agreements Article L.420-1 of the French Commercial Code prohibits agreements intended to prevent prices from being determined by the free play of the market by artificially encouraging price increases or reductions. In application of this provision, the Council considers that the existence of a vertical price fixing agreement between
The French Competition Council condemns vertical price-fixing agreements in the toy distribution sector (Toys Decision)
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