Canard-Duchêne champagnes: Several Arvitis group companies and two wholesale importers fined for maintaining exclusive import rights

Champagne

Canard-Duchêne champagnes: The Autorité de la concurrence fines several Arvitis group companies and two wholesale importers for maintaining exclusive import rights in French Guiana and Guadeloupe after the entry into force of the Lurel Act

Background

The Autorité de la concurrence fines several companies of the Arvitis group (TCD, Champagne Canard-Duchêne, C&C Export, Dourthe, Arvitis Bordeaux and Arvitis SA) as well as two wholesale importer companies, Sodis Chrismay (French Guiana) and Sodipa (Guadeloupe), for maintaining exclusive import rights on Canard-Duchêne champagnes after the Lurel Act came into force.

The total amount of the fines is €283,000.

The “Lurel” Act prohibits all exclusive import agreements since March 2013

The Overseas Economic Regulation Act of 20 November 2012, known as the “Lurel” Act, prohibited, as of 22 March 2013, unjustified exclusive import agreements in overseas territories.

The act aims to fight the high cost of living and includes in its provisions a prohibition in principle of exclusive import agreements, which prevent retailers from competing with wholesalers for their supply and ultimately increase the price of imported items.

The companies in question maintained, contractually and later informally, an exclusive import agreement after March 2013

Evidence shows that the fined companies maintained, until 31 December 2013, contracts containing exclusive distribution clauses.

It was also established that these exclusivity practices continued outside a contractual framework until 31 December 2016. The Autorité found, for example, that Arvitis refused to sell its Canard-Duchêne products directly to potential buyers in French Guiana and redirected them to its exclusive local importer. Arvitis also implemented a promotion mechanism in favour of the sole exclusive importer, intended to encourage local buyers to acquire its products via the latter.

Sanctions imposed

These practices, which continued for several years after 22 March 2013, are regarded as serious in view of the territories concerned, as they forced retailers to buy from Sodis Chrismay and Sodipa to the detriment of potential competing wholesale importers.

In light of these elements, the Autorité de la concurrence has imposed the following fines:

Companies Sanctions (in euros)
For the practices implemented in French Guiana
TCD (jointly and severally liable with Champagne Canard-Duchêne and Arvitis as parent companies) 29,000
TCD, Champagne Canard-Duchêne, C&C Export and Arvitis (jointly and severally liable with Champagne Canard-Duchêne, Dourthe, Arvitis Bordeaux and Arvitis as parent companies) 59,000
Sodis Chrismay (jointly and severally liable with Taillandier Frères as parent company) 119,000
For the practices implemented in Guadeloupe
TCD (jointly and severally liable with Champagne Canard-Duchêne and Arvitis as parent companies) 10,000
TCD, Champagne Canard-Duchêne, C&C Export and Arvitis (jointly and severally liable with Champagne Canard-Duchêne, Dourthe, Arvitis Bordeaux and Arvitis as parent companies) 19,000
Sodipa (jointly and severally liable with SGPM as parent company) 47,000
TOTAL €283,000
Infography

Exclusive imports: previous decisions

This is the tenth sanction decision issued by the Autorité concerning exclusive import practices in the French overseas territories:

Contact(s)

Valentin Py
Valentin Py
Communication officer
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