topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 3083.51 0.32
DAX 9605.08 0.17
IBEX 30 10058.5 -1.04
CAC 40 4387.61 -0.20
FTSE 100 6806.86 -0.05
AEX 397.5 -0.20
DJIA 16272.65 0.46
Nasdaq 4318.933 0.63
FTSE MIB 20298.33 -0.11
TSX Composite 14214.35 0.18
ASX 5415.4 -0.10
Hang seng 22836.96 0.04
Straits Times 3110.78 0.45
ISEQ 20 836.3 0.23
EUR / USD 1.37976 0.67
EUR / GBP 0.82571 0.59
USD / GBP 0.598544 -0.10
Gold 1329.6 -0.13
Oil 108.9 -0.76
Silver 21.28 0.08
You are here: Home News French News France gives Nespresso competition jolt
Enlarge font Decrease font Text size


17/04/2014France gives Nespresso competition jolt

Under pressure from anti-trust authorities, Nespresso France has agreed to a series of measures designed to make it easier for rival companies to produce coffee capsules which can be used in its machines.

Under a provisional accord announced on Thursday, the Nestle subsidiary agreed that any changes to the technical specifications of its machines which would make them incompatible with rival capsules will be announced three months before they are applied.

Nespresso also undertook to stop attempts to persuade its customers to shun other capsules through advertising and statements on its packaging, and to modify certain aspects of its machine warranty conditions.

France's Competition Authority will now monitor the market to see if the steps promised by Nespresso prove sufficient to remove what it sees as obstacles to other companies entering the market.

If it is not satisfied, it can proceed to a full anti-trust procedure which could expose the company to fines of up to 10 percent of its turnover.

France is one of Nespresso's biggest markets, accounting for 25 percent of global sales of its own capsules, famously advertised by George Clooney.

Thursday's agreement came after the Competition Authority expressed concern that Nespresso was abusing its dominant position in the French market by making it difficult if not impossible for rivals to compete with its expensive capsules.

The Authority's president, Bruno Lasserre, said it was "troubling" that Nespresso appeared to have made a series of technical changes to its machines from 2009, just as rivals were seeking to enter the market.

"We do not want to deprive Nespresso of its capacity to innovate, but we also want to widen the choice available to consumers," he added.

The capsule issue has sparked legal battles in Germany and Switzerland.



© 2014 AFP


0 reactions to this article

0 reactions to this article

 
 
 
 
 
Inside Expatica
Management culture in France

Management culture in France

This handy guide from Expertise in Labour Mobility includes information on business hierarchy, negotiations, and etiquette.

American associations and clubs in Paris

American associations and clubs in Paris

A listing of organizations in the Paris area that cater primarily to Americans living in France. Updated April 2011.

British associations and clubs in Paris

British associations and clubs in Paris

Our handy guide to the British community in Paris, from cricket clubs to Scottish country dancing lessons to where to find a jar of Marmite.

Anglophone services in France

Anglophone services in France

Here's a short introduction to our Banking section for those living in France, from how to open a bank account to Islamic banking and investments.