In a decision dated December 19, 2023, the French Competition Authority fined the ROLEX group 91.6 million euros for prohibiting its authorized distributors from reselling its watches online for more than 10 years.
Abuse of dominance / Exclusivity clauses
The Court of Justice of the European Union (CJEU) confirms that abusive conduct by distributors forming part of the distribution network of a producer in a dominant position can be imputed to the latter under article 102 TFEU if it is established that such conduct was not adopted independently by the distributors, but form part of a unilateral commercial policy of the producer implemented though the distributors.
Many entrepreneurs who want to start distributing branded products wonder whether it is necessary to obtain the agreement of the brand owner (the supplier) and to enter into a distribution contract.
The answer to this question depends on the nature of the product and the distribution method chosen by the supplier.
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Until now, criminal sanctions for violations of competition law, as provided for in the Commercial Code, could be applied in the future. In addition to administrative fines for companies (up to 10% of the worldwide turnover of the companies concerned), prison sentences and fines for individuals could be added.
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