BikeBiz

French suppliers hit with anti-comp fine

Carlton Reid Jan 10 2007, 5:15pm

Some of  biggest names in the French bicycle industry have been fined a collective total of 508,000 Euro (£340k) for anti-competitive practices that are said to have taken place in 2004. Those hit include Time, Look, Two Lambs and Shimano France. It's not yet clear whether the French judgement could have any EU-wide ramifications.

The fine was imposed on 22 companies by the Conseil de la Concurrence following a referral by the Minister of Economy on September 8th 2004. The fine was imposed before Christmas but the news did not circulate widely.

The Conseil de la Concurrence penalised the companies for having "implemented a series of anticompetitive agreements and introduced into the terms of sale and other distribution contracts anticompetitive clauses, aimed at hindering the free setting of prices by the product distributors."

All 22 companies specialise in the mid to high-end market.

The Conseil de la Concurrence said: "Small retailers coordinated their business policy and agreed on minimum retail prices in order to hinder the development of competing retailers, notably discount dealers."

Some of the French IBDs fingered were part of retail groups  Master Cycle (now MC2R) and Bouticycles.

The Conseil said "several retailers had set up anticompetitive meetings with the aim to restrict cycle distribution to traditional networks" and thee Conseil considered that "setting minimum resale recommended prices and predefined margin rates constituted serious practices, all the more that members of Master Cycle and Bouticyles intervened in their respective network to ensure that the recommended prices were respected and exerted pressure on their suppliers so that they stop delivering competing retailers who implement discount prices."