Case At.40181 - Philips
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EUROPEAN COMMISSION Competition DG CASE AT.40181 - PHILIPS (Only the English text is authentic) ANTITRUST PROCEDURE Council Regulation (EC) 1/2003 Article 7 Regulation (EC) 1/2003 Date: 24.07.2018 This text is made available for information purposes only. A summary of this decision is published in all EU languages in the Official Journal of the European Union. Parts of this text have been edited to ensure that confidential information is not disclosed. Those parts are replaced by a non-confidential summary in square brackets or are shown as […]. EN EN EUROPEAN COMMISSION Brussels, 24.7.2018 C(2018) 4797 final COMMISSION DECISION of 24.7.2018 relating to proceedings under Article 101 of the Treaty on the Functioning of the European Union Case AT.40181 Philips (Only the English text is authentic) EN EN TABLE OF CONTENTS 1. Introduction .................................................................................................................. 4 2. The parties concerned .................................................................................................. 5 2.1. Undertaking subject to the proceedings ....................................................................... 5 2.2. Retailers of Philips France's Consumer Lifestyle business .......................................... 6 3. The geographic and product areas concerned .............................................................. 6 4. Procedure...................................................................................................................... 6 5. Facts ............................................................................................................................. 7 5.1. Introduction .................................................................................................................. 7 5.2. The relevant conduct .................................................................................................... 7 5.2.1. General presentation of the relevant conduct ............................................................... 7 5.2.2. Specific instances ......................................................................................................... 9 5.3. Online pricing............................................................................................................. 11 6. Legal assessment ........................................................................................................ 11 6.1. Agreements and concerted practices .......................................................................... 11 6.1.1. Principles .................................................................................................................... 11 6.1.2. Application to this case .............................................................................................. 12 6.2. Single and continuous infringement ........................................................................... 12 6.2.1. Principles .................................................................................................................... 12 6.2.2. Application to this case .............................................................................................. 12 6.3. Restriction of competition .......................................................................................... 13 6.3.1. Principles .................................................................................................................... 13 6.3.2. Application to this case .............................................................................................. 13 6.4. Effect on trade between Member States ..................................................................... 14 6.4.1. Principles .................................................................................................................... 14 6.4.2. Application to this case .............................................................................................. 14 6.5. Non-applicability of Article 101(3) of the Treaty ...................................................... 14 6.5.1. Principles .................................................................................................................... 14 6.5.2. Application to this case .............................................................................................. 15 7. Duration of the infringement ...................................................................................... 15 8. Liability ...................................................................................................................... 15 8.1. Principles .................................................................................................................... 15 8.2. Application to this case .............................................................................................. 16 9. Remedies and fines .................................................................................................... 16 9.1. Remedies under Article 7 of Regulation (EC) No 1/2003 ......................................... 16 EN 2 EN 9.2. Fines under Article 23(2) of Regulation (EC) No 1/2003 - principles ...................... 16 9.3. The intentional or negligent nature of the infringement ............................................ 17 9.4. Calculation of the fines .............................................................................................. 17 9.4.1. Value of sales ............................................................................................................. 17 9.4.2. Gravity........................................................................................................................ 17 9.4.3. Duration...................................................................................................................... 18 9.4.4. Calculation of the basic amount ................................................................................. 18 9.4.5. Aggravating or mitigating factors .............................................................................. 18 9.4.6. Application of the 10% turnover limit ....................................................................... 18 9.4.7. Reduction of the fine in view of cooperation ............................................................. 18 9.4.8. Conclusion: final amount of the fine .......................................................................... 18 EN 3 EN COMMISSION DECISION of 24.7.2018 relating to proceedings under Article 101 of the Treaty on the Functioning of the European Union Case AT.40181 Philips (Only the English text is authentic) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty1, and in particular Article 7(1) and Article 23(2) thereof, Having regard to Commission Regulation (EC) No 773/2004 of 7 April 2004 relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the EC Treaty2 , Having regard to the Commission Decision of 2 February 2017 to initiate proceedings in this case, Having given the parties concerned the opportunity to make known their views on the objections raised on 7 June 2018 by the Commission pursuant to Article 27(1) of Regulation (EC) No 1/2003 and Article 12 of Regulation (EC) No 773/2004, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, Having regard to the final report of the Hearing Officer in this case, Whereas: 1. INTRODUCTION (1) This Decision concerns Philips France S.A.S. ("Philips France") and Koninklijke Philips N.V. Philips France and Koninklijke Philips N.V. together are hereinafter referred to as "Philips". (2) Philips France implemented practices in relation to products sold by its Consumer Lifestyle business organisation, aimed at restricting the ability of retailers in France to determine their resale prices independently. (3) This Decision establishes that those practices constitute an infringement of Article 101 of the Treaty on the Functioning of the European Union ("the Treaty"). 1 OJ C 115, 9/5/2008, p.47. 2 OJ L 123, 27.4.2004, p. 18 EN 4 EN 2. THE PARTIES CONCERNED 2.1. Undertaking subject to the proceedings (4) Koninklijke Philips N.V. is a technology company headquartered in Amsterdam. It is divided into two businesses: Health systems and Personal Health (known as Consumer Lifestyle until 2016).3 (5) Philips' Consumer Lifestyle business had local sales organisations within the European Union. (6) The local sales organisation concerned by this Decision is Philips France's Consumer Lifestyle business which, between 21 November 2011 to 20 November 2013 ("the relevant period"), was operated by Philips France. (7) During the relevant period, Philips France's Consumer Lifestyle business included:4 (i) Personal Care; (ii) Lifestyle Entertainment; (iii) Health & Wellness; and (iv) Domestic Appliances. (8) Personal Care consists of the male grooming and beauty businesses. The products offered by the male grooming business are a wide variety of shavers, beard trimmers, body groomers, hair clippers, multi-purpose trimmers, precision trimmers and hair removal systems for men. The products offered by the beauty business are a wide variety of hair dryers, hair straighteners, hair curlers, hair stylers, epilators, lady shavers and trimmers, hair removal