Nike, Sanrio, Universal Studios face EU probe over sale terms
Staff Writer |
The European Commission has launched three separate antitrust investigations into whether certain licensing and distribution practices of Nike, Sanrio and Universal Studios illegally restrict traders from selling licensed merchandise cross-border and online within the EU Single Market.
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Commissioner Margrethe Vestager, in charge of competition policy said: "The Commission is investigating whether Nike, Sanrio and Universal Studios are restricting cross border and online sales of merchandising products.
"We are going to examine whether the licensing and distribution practices of these three companies may be denying consumers access to wider choice and better deals in the Single Market".
The investigations concern the licensing and distribution of merchandising products.
These are products, such as clothes, shoes, phone accessories, bags or toys, on which an image or text is applied during the manufacturing process.
The aim is to increase the products' attractiveness for consumers, often children or teenagers.
The manufacturer (licensee) may only use such images or text if it has signed a licencing agreement with the owner of the relevant intellectual property rights (licensor).
Nike, Sanrio and Universal Studios license the rights for some of the world's most well-known brands.
Among other brands, sports apparel manufacturer Nike is the licensor of rights for Fútbol Club Barcelona's merchandise, Sanrio is the licensor of rights for Hello Kitty and Universal Studios is the licensor of rights for the "Minions" and "Despicable Me".
The Commission will investigate whether the three companies, in their role as licensors of rights for merchandising products, may have breached EU competition rules by restricting their licensees' ability to sell licensed merchandise cross-border and online.
These practices may ultimately harm consumers by preventing them from benefiting from greater choice and lower prices, both online and offline. ■