Friday, 18 December 2015

Decision 622/2015

Decision on the complaint under ref. no 9151/22.12.2009 lodged by “DIAMESO KITCHEN FURNITURE LTD” against “EPIPLOSYNTHESIS NEOSET S.A.” for infringement of Articles 1 par. 1 L. 703/1977 (now Article 1 L. 3959/2011) and 81 par. 1 EC Treaty (now Article 101 TFEU)

Decision 622/2015
File (PDF) Decision 622/2015
Date of Publication of Decision December 18th, 2015
Issue Number of Government Bulletin  
Relevant Market Kitchen Furniture
Subject of the Decision Collusion
Legal Framework Article 1 L. 3959/2015
Operative part of the Decision Finding an infringemenent
Summary of Decision

Following a complaint lodged by the company – former franchisee "DIAMESO KITCHEN FURNITURE LTD ", against the company" EPIPLOSYNTHESIS NEOSET S.A.", the competent Chamber of the Hellenic Competition Commission held by its decision that the company complained of violated Article 1 of Law 3959/2011 (former article 1 of Law 703/1977), regarding the operating conditions of the franchise system and the relevant contracts with the franchisees for kitchen furniture stores under the brand name "NEOSET KITCHEN".

According to the grounds of the decision, the examination of the relevant contractual terms and practices of the company complained of revealed evidence of hardcore vertical restrictions of competition which consist, in particular, in resale price maintenance (RPM), during the period 2000 to 2009, as well as in the restriction of cross-supplies between franchisees, in particular through an exclusive supply clause and in conjunction with the clause under which only retail sales were allowed as well as  restrictions on active sales to end users by the members of the selective distribution network, during the period 2000 to 2013.

For the infringements found, the Commission imposed on NEOSET a fine totaling 88,814.62 Euros, taking into account, inter alia, the crisis in the specific sector, which contributed to the bankruptcy of NEOSET, as well as the voluntary modification of the agreements prior to the HCC’s intervention.

Judicial Means Final. Decision has not been appealed
Decisions by the Court of Appeal of Athens (Administrative Division) -
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