Distribution of perfumes and cosmetics in the French Antilles, French Guiana and La Réunion

Published on October 08, 2019

parfums

The Autorité de la concurrence hands down fines to Procter & Gamble, Coty and Chanel and their wholesale importers for having set up exclusive import agreements.

The Lurel Law has prohibited exclusive import agreements since March 2013

The Law of 20 November 2012 on Economic Regulation in French overseas territories, known as the Lurel Law, addresses the specific problems of these regions (insularity, remoteness, narrow markets, existence of barriers to entry, etc.) by prohibiting exclusive agreements to import to the French overseas territories as of 22 March 2013.


Brands and products concerned

Procter & Gamble, Coty and Chanel and their wholesale importers maintained or established, after the entry into force of the Lurel Law, exclusive importation for the distribution of perfumes and cosmetic products in Guadeloupe, Martinique, French Guiana and La Réunion.

 

Companies Products concerned Brands concerned Areas concerned Period
Groupe Procter & Gamble/Parfumerie d'Outremer shower gels, aftershave, eau de toilette, deodorants, etc. Puma, Gucci, Montblanc, Rochas, Dolce Gabbana, etc. French Antilles/French Guiana 22 March 2013 - 25 February 2014
Coty/Parfumerie d'Outremer shower gels, aftershave, eau de toilette, deodorants, etc. Calvin Klein, Marc Jacobs, Tiffany, Balenciaga French Antilles/French Guiana 26 September 2016 - 1 February 2018
Chanel then Coty /Sodibel make-up, etc. Bourjois La Réunion 22 March 2013 - 23 January 2014

Practices that have hindered the growth of competitors and reduced household purchasing power

These practices hindered the growth of competing wholesale importers and deprived retailers of access to competing wholesalers for their supplies of perfumes and cosmetics. They resulted in increased costs for retailers and, consequently, the prices of perfumes and cosmetics for consumers in French overseas territories.

Practices not disputed by companies

In calculating the fines, the Autorité took into account that all the companies concerned did not contest the facts and sought to benefit from the settlement procedure. The Autorité de la concurrence granted their request.


In the light of these details, the Autorité has imposed the following fines:


 

Company Fine (€)
Groupe Procter & Gamble 40 000
Coty 32 000
Coty and Chanel (for Bourjois products) 13 000
Parfumerie d'Outremer 68 000
Sodibel 23 000
Total 176 000

Les prédécents

This is the seventh decision issued by the Autorité de la concurrence concerning exclusive import practices in the French overseas territories:

19-D-11 / press release of 29 May 2019
18-D-21 / press release of 8 October 2018
18-D-03 / press release of 20 February 2018
17-D-14 / press release of 27 July 2017
16-D-15 / press release of 6 July 2016
15-D-14 / press release of 10 September 2015

This is also the 15th decision issued using the settlement procedure since the entry into force of this provision under the Law of 6 August 2015 for Growth, Activity and Equal Economic Opportunities, known as the Macron Law.

Contacts

Bertille Gauthier
Communication Officer