FAURECIA SIEGES D’AUTOMOBILE Fined €1,440,000 for Antitrust Violations
On November 15, 2024, the French Competition Authority (Autorité de la concurrence) imposed a fine of €1,440,000 on FAURECIA SIEGES D’AUTOMOBILE (SIRET number: 393 162 433 00311) for engaging in anti-competitive practices.
Background
The investigation into FAURECIA SIEGES D’AUTOMOBILE began in 2022 after the Competition Authority received complaints alleging that the company had engaged in anti-competitive practices related to the distribution of automobile seats in France. The Authority’s investigation found that FAURECIA SIEGES D’AUTOMOBILE had implemented a series of measures aimed at restricting competition and maintaining its dominant position in the market.
Anti-Competitive Practices
The Competition Authority specifically found that FAURECIA SIEGES D’AUTOMOBILE had engaged in the following anti-competitive practices:
- Exclusive distribution agreements: FAURECIA SIEGES D’AUTOMOBILE required its distributors to sell only its products, preventing them from distributing competing products.
- Non-compete clauses: FAURECIA SIEGES D’AUTOMOBILE imposed non-compete clauses on its former distributors, prohibiting them from competing with the company for a period of two years after the termination of their distribution agreements.
- Vertical price fixing: FAURECIA SIEGES D’AUTOMOBILE set minimum resale prices for its products, restricting competition among its distributors.
Impact on Competition
The Competition Authority concluded that these practices had a significant impact on competition in the market for automobile seats in France. They restricted the ability of distributors to offer consumers a wider choice of products at competitive prices, and they prevented new entrants from entering the market.
Fine
The fine of €1,440,000 represents approximately 2% of FAURECIA SIEGES D’AUTOMOBILE’s annual revenue. The Competition Authority took into account the company’s cooperation with the investigation and its commitment to cease and desist from the anti-competitive practices in determining the amount of the fine.
Significance
This case sends a strong message to businesses that anti-competitive practices will not be tolerated in France. The Competition Authority is committed to ensuring that competition remains fair and open in all sectors of the economy, and it will continue to investigate and sanction companies that engage in anti-competitive behavior.
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economie.gouv.fr a new article on 2024-11-15 12:55 titled “Amende de 1 440 000 € prononcée à l’encontre de la société FAURECIA SIEGES D’AUTOMOBILE (numéro de SIRET : 393 162 433 00311)”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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