Following a report prepared by the local network of the Minister of the Economy and submitted by the Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF), the Autorité de la concurrence has imposed a €4 million penalty on the Mariage Frères group – one of France’s leading producers of premium teas – for hindering the commercial freedom of its distributors for almost 15 years by forbidding them to sell its branded products online, on the one hand, and to resell its products to other retailers, on the other. These practices, which limited intra-brand competition and partitioned markets, constitute a cartel.

In a sector where online sales are enjoying strong growth, the ban on selling the products concerned on the Internet was likely to restrict the development of distributors’ business. By coupling this practice with the ban on reselling to other distributors, Mariage Frères also deprived end consumers of the possibility of enjoying better prices as a result of effective competition between all distributors.

Mariage Frères Fined €4 Million for Restricting Distributor Sales

The Autorité de la concurrence, France's competition authority, has imposed a significant fine of €4 million on Mariage Frères, a prominent producer of premium teas. This penalty stems from the company's practices that have been found to hinder the commercial freedom of its distributors for almost 15 years.

 According to a report from the local network of the Minister of the Economy, Mariage Frères prohibited its distributors from selling its branded products online and from reselling these products to other retailers. Such restrictions have been deemed to limit intra-brand competition and effectively partition markets, which constitutes a cartel under competition law.

 In a market where online sales are rapidly growing, the ban on online sales was particularly detrimental, as it restricted the ability of distributors to expand their businesses. Furthermore, by preventing resales to other distributors, Mariage Frères deprived consumers of the benefits of competitive pricing, which could have resulted from a more open market among distributors.



Mariage Frères Fined €4 Million for Restricting Distributor Sales

The French Competition Authority has fined Mariage Frères €4 million for restricting its distributors' ability to sell products online and to other retailers, hindering competition for nearly 15 years.