11 September 2014
Deals | France - Competition & IP | Gide and De Brauw Blackstone Westbroek advise D.E Master Blenders 1753 on the complaint filed against Nestlé / Nespresso before the French Competition Authority for abuse of dominant position
In December 2010, D.E Master Blenders 1753 (DEMB, formerly Sara Lee), owner of French coffee brands L’Or and Maison du Café, filed a complaint against Nestlé and its subsidiary Nespresso before the French Competition Authority for abuse of dominant position on the pump portioned espresso machine market and the market for capsules compatible with Nespresso coffee machines.
The complaint aimed at putting an end to Nestlé’s foreclosure strategy on the market of capsules compatible with Nespresso coffee machines, which involved a series of abuses concerning in particular numerous technical modifications and technical tying.
The complaint has led the French Competition Authority to identify competition concerns and Nestlé / Nespresso has been compelled to file commitments in order to address these concerns.
The decision of 4 September states that Nestlé / Nespresso may hold a dominant position both on the market of pump portioned coffee machines and on the market of capsules compatible with Nespresso coffee machines. The FCA also takes the view that Nestlé / Nespresso may have implemented abuses of dominant position through technical, commercial and legal tying.
Hence, the French Competition Authority renders mandatory Nestlé / Nespresso’s commitments among which:
De Brauw Blackstone Westbroek in Amsterdam and Gide in Paris advised D.E Master Blenders 1753, with a team comprising Gertjan Kuipers, partner, Bart de Rijke and Astrid Janssen, associates, on competition and patents aspects (De Brauw Blackstone Westbroek) in Amsterdam, Yann Utzschneider, partner, François Doridou and Charles Terdjman, associates, on competition aspects, Grégoire Triet and Raphaëlle Dequiré-Portier, partners, and Julie Pailhès, associate, on patents aspects (Gide) in Paris.