EU Fines NBCUniversal $16M for Restricting Sales of Merchandise in Europe
The decision follows fines imposed on Nike and Sanrio for similar offenses.
January 30, 2020 at 02:07 PM
3 minute read
The European Commission has fined NBCUniversal and other Comcast companies €14.3 million ($15.86 million) for illegally restricting cross-border sales of licensed merchandise, such as "Jurassic Park" toys, "Minions" school bags and "Big Lebowski" mugs.
The move is the EU's latest regulatory effort to enforce competition rules governing its single market.
"This is the third decision dealing with sales restrictions on licensed products sold across Europe," Margrethe Vestager, the EU's antitrust chief, said in a statement. "Universal's strategy to prevent traders from selling licensed products across customer groups and countries is against EU antitrust rules. Such sales restrictions undermine the very foundations of the EU Single Market and cannot be tolerated."
NBCUniversal's actions affected a wide range of products—from toys and sweets to clothes, mugs and household products, she said. Its contracts with licensees divided up the European single market and took away choice from consumers, which may have led to higher prices.
The decision to fine NBCUniversal and other companies belonging to the Comcast Corp. group follows an investigation the Commission began in June 2017 into conditions on sales of licensed merchandise.
The Commission found that the company imposed a range of measures that restricted merchants' ability to sell NBCUniversal's merchandise. They included a ban on online sales, clauses preventing merchants from selling goods outside of their designated market, and obligations to pay the company a share of sales from outside those markets.
The investigation found that these measures, which were in place for six-and-a-half years, carved up the EU's market into a series of smaller markets and hurt consumers by preventing them from being able to buy products at the lowest price.
The decision to fine NBCUniversal follows two earlier penalties on companies for similar offenses. Last year, the Commission fined Nike €12.5 million ($13.8 million) for restricting traders from selling licensed merchandise outside their home market. A few months later, it also fined Sanrio, the company that owns the Hello Kitty brand, €6.2 million ($6.8 million) for restricting cross-border sales of its products.
|
READ MORE:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllNorton Rose Racial Discrimination Complaint Triggered South African IT Probe
4 minute readHogan Lovells Takes Partner Quartet, Hiring from Dechert, Ashurst in Singapore
Trending Stories
- 1Judicial Ethics Opinion 24-61
- 2Decision of the Day: School District's Probe Was a 'Sham'; Title IX Administrator Showed Sex-Based Bias
- 3US Magistrate Judge Embry Kidd Confirmed to 11th Circuit
- 4Shaq Signs $11 Million Settlement to Resolve Astrals Investor Claims
- 5McCormick Consolidates Two Tesla Chancery Cases
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250