Belgian Competition Authority sanctions Le Creuset for resale price maintenance
On 13 December 2023, the Belgian Competition Authority imposed a fine of EUR 490,112 to the cookware retailer Le Creuset Benelux for imposing resale prices on its distributors.
The Belgian Competition Authority ruled that over a period of six and a half years, Le Creuset engaged in anti-competitive practices, particularly in relation to prices. Le Creuset's recommended resale prices to its distributors were found to be, in effect, resale prices imposed through regular checks and pressure tactics on distributors in the event of non-compliance with its pricing policy. The Competition Authority also found that Le Creuset systematically checked its distributors' various promotions and communicated information on the price changes of competitors.
According to the Belgian Competition Authority, guaranteeing a certain price level on the market by limiting distributors' ability to determine their own selling prices to consumers, as was the case with the policy implemented by Le Creuset, restricts price competition between distributors.
Furthermore, the Belgian Competition Authority considers the imposition of resale prices by suppliers on their distributors constitutes a serious infringement of competition law, and more specifically of Article IV.1, §1 of the Code of Economic Law and Article 101, §1 of the Treaty on the Functioning of the European Union, which prohibit anti-competitive agreements between companies. Such practices can result in substantial fines and the absolute nullity of the distribution contract concerned.
Le Creuset accepted the proposed settlement procedure, acknowledged the existence of the infringements, and waived its right to appeal against the decision. In return, the fine was reduced by 10%.
Such decisions on vertical agreements are relatively rare in Belgium. A similar decision, however, was adopted in January 2023 concerning Caudalie in the cosmetics sector.
