The Competition Authority imposes a fine of more than four million euros on the chocolatier De Neuville

The Competition Authority has imposed a fine of 4.07 million euros on French chocolatier De Neuville and its parent company Savencia, for restricting the commercial freedom of its franchisees, it said on Thursday February 15. .

Following an investigation report sent by the Fraud Repression Department (DGCCRF), “the Competition Authority sanctions the De Neuville company for having implemented practices aimed at restricting, on the one hand, the online sale of De Neuville brand chocolates by its franchisees, and on the other hand sales of the latter intended for professional customers”announces the competition watchdog in a press release.

What the Competition Authority says

Between 2006 and 2014, the Authority notes that the franchise contracts entered into by De Neuville explicitly prohibited franchisees “mail order or Internet sales”. This clause then appeared until 2019 in an annex to the franchise contracts. The commercial freedom of franchisees, in particular relating to operations to canvass new professional customers, was also very strictly regulated by De Neuville between 2006 and 2022. “Franchisees had to first approach professional customers located in their own catchment area”notes the Authority. “They could only prospect other territorial areas when the contractually allocated catchment area was fully prospected.”

“Taking into account the duration of the practices” – 13 years for online sales restrictions and 16 years for the limitation of the commercial freedom of franchisees – “and the membership of the De Neuville company to a group, the Authority sanctions the company De Neuville, jointly with its parent company Savencia, with a fine of 4.068 million euros”, concludes the independent body.