Antitrust Law Daily Wrap Up, ANTITRUST NEWS: German sporting goods maker adidas agrees to amend dealer policy for online sales, (Jul 3, 2014)
Organizations Mentioned:ASICS Deutschland GmbH | ASICS Deutschland GmbH. | adidas AG
The Bundeskartellamt, the German competition authority, announced on July 2 that it was closing proceedings against sports apparel and equipment maker adidas AG (adidas), after it amended its online sales policy to permit authorized retailers to operate shops at online market places.
It has been adidas' policy to only sell its products to consumers through authorized dealers. Conditions adidas introduced in 2012 for online sales prohibited retailers from selling adidas products through online marketplaces such as eBay, Amazon, and a number of German websites, including Rakuten.de, Yatego.de, Hitmeister.de and meinPaket.de. adidas also placed restrictions on authorized dealers regarding adidas brand related terms as search words for search engine advertising such as Google AdWords.
The Bundeskartellamt informally notified adidas that its ban on sales via online market places and the restrictions imposed on authorized retailers with regard to search engine advertising raised serious competition concerns. In response, adidas submitted an amended version of its conditions of sale for e-commerce, in which it completely abandoned its ban on sales via online market places, and permitted authorized dealers to use its brand name as a search word for search engine advertising purposes.
The Bundeskartellamt noted that it is currently also holding discussions with ASICSDeutschland GmbH regarding of similar conditions of sale, and on how the company could amend its selective distribution system in order to bring it in line with competition law. The proceedings against adidas and ASICS are test cases, according to Bundeskartellamt President Andreas Mundt, because a number of brand manufacturers are currently contemplating similar measures.
Mundt said that consumers will directly benefit from the amended conditions of sale. “The trading possibilities offered by the Internet create new challenges for both manufacturers and retailers…It goes without saying that manufacturers can select their distributors according to certain quality requirements. However, both under European and German competition law they are prohibited from largely eliminating a principal distribution channel such as the web,” Mundt stated.
Companies: adidas AG; ASICS Deutschland GmbH.
News: Antitrust Advertising