Breaking News

CORSAIR Changes the Game with PureVector, a Science-Based Personalized Aiming Technology, Launching Exclusively in the SABRE v3 PRO PureVector Mouse Series AMD FSR Upscaling 4.1 Boosts Frames and Image Quality on More Devices TerraMaster TerraSync Update COLORFUL Launches iGame X870E ULTRA-S V14 Motherboard SWIT Packs 210Wh and 200W Output into Compact MINO-A Gold Mount Battery Series

logo

  • Share Us
    • Facebook
    • Twitter
  • Home
  • Home
  • News
  • Reviews
  • Essays
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed

Search form

Guess Fined $45 million for Blocking Cross-border Sales

Guess Fined $45 million for Blocking Cross-border Sales

Enterprise & IT Dec 17,2018 0

The European Commission today fined the clothing company Guess €39,821,700 for restricting retailers from online advertising and selling cross-border to consumers in other European Member States, in breach of EU competition rules.

Commissioner Margrethe Vestager, in charge of competition policy, said: "Guess' distribution agreements tried to prevent EU consumers from shopping in other Member States by blocking retailers from advertising and selling cross-border. This allowed the company to maintain artificially high retail prices, in particular in Central and Eastern European countries. As a result, we have today sanctioned Guess for this behaviour. Our case complements the geoblocking rules that entered into force on 3 December – both address the issue of sales restrictions that are at odds with the Single Market."

Guess operates a selective distribution system in the European Economic Area (EEA), where authorised retailers are chosen on the basis of quality criteria.

Companies in the EEA are generally free to set up the distribution system that best serves them, including selective distribution systems, where the products can only be sold by pre-selected authorised sellers. However, these systems must comply with EU competition rules. In particular, consumers must be free to purchase from any retailer authorised by a manufacturer, including across national borders. At the same time, authorised retailers must be free to offer the products covered by the distribution contract online, to advertise and sell them across borders, and to set their resale prices.

The Commission investigation has found that Guess' distribution agreements restricted authorised retailers from:

  • using the Guess brand names and trademarks for the purposes of online search advertising;
  • selling online without a prior specific authorisation by Guess. The company had full discretion for this authorisation, which was not based on any specified quality criteria;
  • selling to consumers located outside the authorised retailers' allocated territories;
  • cross-selling among authorised wholesalers and retailers; and
  • independently deciding on the retail price at which they sell Guess products.

The agreements allowed Guess to partition European markets. The Commission has observed that in Central and Eastern European countries (Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) the retail prices of Guess products are, on average, 5-10% higher than in Western Europe.

Guess cooperated with the Commission beyond its legal obligation to do so. Therefore, the Commission granted Guess a 50% fine reduction in return for this cooperation.

Tags: european comission
Previous Post
Acer to Start Testing Driverless Cars in Taiwan
Next Post
Huawei Nova 4 Comes With a Hole-punch Display and a 48-megapixel Camera

Related Posts

  • European Commission Outlines Strategies for Data and Artificial Intelligence

  • European Commission fines NBCUniversal €14.3 million For Restricting Sales of Film Merchandise Products

  • Booking.com Agrees to Present Offers and Prices According to the EU Law

  • Online Platforms Urged to do More to Combat Fake News in EU

  • European Commission Imposes Measures on Broadcom's TV and Modem Chipsets Over Anticompetitive Practices

  • European Commission to Investigate Proposed Public Support for Samsung Battery Plant in Hungary

  • European Commission Fines Qualcomm €242 Million for Engaging in Predatory Pricing

  • European Commission Opens Investigation Into Amazon

Latest News

CORSAIR Changes the Game with PureVector, a Science-Based Personalized Aiming Technology, Launching Exclusively in the SABRE v3 PRO PureVector Mouse Series
Gaming

CORSAIR Changes the Game with PureVector, a Science-Based Personalized Aiming Technology, Launching Exclusively in the SABRE v3 PRO PureVector Mouse Series

AMD FSR Upscaling 4.1 Boosts Frames and Image Quality on More Devices
GPUs

AMD FSR Upscaling 4.1 Boosts Frames and Image Quality on More Devices

TerraMaster TerraSync Update
Enterprise & IT

TerraMaster TerraSync Update

COLORFUL Launches iGame X870E ULTRA-S V14 Motherboard
PC components

COLORFUL Launches iGame X870E ULTRA-S V14 Motherboard

SWIT Packs 210Wh and 200W Output into Compact MINO-A Gold Mount Battery Series
Cameras

SWIT Packs 210Wh and 200W Output into Compact MINO-A Gold Mount Battery Series

Popular Reviews

Endorfy Thock V2 Wireless Keyboard

Endorfy Thock V2 Wireless Keyboard

SoundPeats Cove Pro

SoundPeats Cove Pro

The Quiet Technology Behind the Spin

The Quiet Technology Behind the Spin

Akaso Brave 8 Lite

Akaso Brave 8 Lite

SoundPeats C30

SoundPeats C30

Kioxia Exceria Plus G3 512GB microSD

Kioxia Exceria Plus G3 512GB microSD

be quiet! Dark Perk Mice

be quiet! Dark Perk Mice

XbotGo Chamaleon

XbotGo Chamaleon

Main menu

  • Home
  • News
  • Reviews
  • Essays
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
  • About
  • Privacy
  • Contact Us
  • Promotional Opportunities @ CdrInfo.com
  • Advertise on out site
  • Submit your News to our site
  • RSS Feed