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International Distribution Institute
June 15 and 16, 2007 Conference
Daria SAUERAvocat
Cabinet [email protected]
Panel on Recommended Prices and Price Fixing
The French Law Perspective
Panel on Recommended Prices and Price Fixing
The French Law Perspective
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Section L. 420-1 of the French commercial code (equivalent to Article 81 of the EC Treaty)
Section L. 442-5 of the French commercial code (restrictive practice ; criminal offence ; fines up to 15,000€ - x 5 for undertakings)
Reminder : Criminal offence for individuals to take a personnal and material part in resale price maintenance (Section L. 420-6 of the French commercial code)
Price Fixing and Recommended price
French rules French rules
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Proof of tacit agreement
Combination of
« serious, precise et concording » indications
Around 3 criteria
Combination of
« serious, precise et concording » indications
Around 3 criteria
Criteria n°1 Criteria n°2 Criteria n°3
Suggestion of
Retail Sale Prices
Agreement proposal
(Conseil de la concurrence, March 13, 2006, « Parfumeurs »)
Significant implementation of
recommended prices
Price policing
measures
Tacit acceptanceControl of agreement
effectiveness
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Proof of tacit agreement
Criteria n° 1 : Prohibited agreement proposalCriteria n° 1 : Prohibited agreement proposal
The suggestion of retail prices to distributors may be demonstrated by any means through which the manufacturer informs its distributors of intended retail prices
For instance :
Participation in meetings
Price brochures
Pre-labelling
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Price surveys interpretation by the French Competition Council, the confirmation of an 80 % threshold rule: Presumption of prohibited agreement : the Competition
Council considers that an 80 % or over rate of implementation of recommended retail prices is sufficient to establish infringement
Need of further evidence : On the contrary, should the implementation rate stay below the 80 % threshold, the situation needs to be investigated further by directly observing, by means of a survey chart, the effective concentration of prices nearby the recommended retail prices.
Proof of tacit agreement
Criteria n° 2 : ImplementationCriteria n° 2 : Implementation
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Proof of tacit agreement
Criteria n° 2 : ImplementationCriteria n° 2 : Implementation
Example of Women Gaultier Spray price survey : Infringement found
(Conseil de la concurrence, March 13, 2006, point n°539)
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Proof of tacit agreement
Criteria n° 2 : ImplementationCriteria n° 2 : Implementation
Example of Azzaro perfume price survey : Infringement not found
(Conseil de la concurrence, March 13, 2006, point n°522
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• Contrary to European competition authorities (cf. CFI judgment of January 13, 2004, Case T-67/01), the Competition Council does not require that control measures necessarily involve coercion.
• For instance, they may take the form of :
Simple price information returns Incitative end of year discounts
Proof of tacit agreement
Criteria n° 3 : Control measuresCriteria n° 3 : Control measures
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FIDALMarseille Office (PACA Region)
480, Avenue du PradoBP 62 – 13266 Marseille Cedex 08
Tel. : + 33.4.96.20.53.99Télécopie : + 33.4.96.96.07. 31
Daria SAUER
Avocat
Distribution – CompetitionIntellectual Property – Information Technologies