LONDON (ShareCast) - (Sharecast News) - The European Commission has hit American shoemaker Nike with a sizeable fine for preventing retailers and licencees from selling licensed merchandise to other countries within the European Economic Area.
Nike, which holds the licence for clubs including Manchester City, Tottenham, Barcelona, Atlético Madrid, Paris Saint-Germain and Inter Milan, imposed a number of direct measures restricting out-of-territory sales by licensees, such as clauses explicitly prohibiting companies in one country from selling in another European territory, imposing double royalties for out-of-territory sales and obliging licensees to refer orders for out-of-territory sales to Nike.

Commissioner Margrethe Vestager said the ban, which was in force for roughly 13 years, was "illegal under EU antitrust rules" and so imposed a €12.5m fine on Nike.

"Football fans often cherish branded products from their favourite teams, such as jerseys or scarves. Nike prevented many of its licensees from selling these branded products in a different country leading to less choice and higher prices for consumers," Vestager said.

"Today's decision makes sure that retailers and consumers can take full advantage of one of the main benefits of the single market: the ability to shop around Europe for a larger variety of products and for the best deals."

The EC said Nike had cooperated with the Commission "beyond its legal obligation to do so", leading Vestager to give Nike a 40% fine reduction in return.

As of 1130 GMT, Nike shares had dipped 0.12% in pre-market trade to $82.09 each.

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