EU fines Nike $14 million for blocking cross-border sales of football merchandise

European Competition Commissioner Margrethe Vestager said Nike’s actions deprived football fans in other countries of the opportunity to buy their clubs’ merchandise. (AFP)
Updated 25 March 2019
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EU fines Nike $14 million for blocking cross-border sales of football merchandise

  • The European Commission said Nike’s illegal practices occurred between 2004 to 2017
  • Sales restrictions relate to licensed merchandise for FC Barcelona, Manchester United, Juventus, Inter Milan, AS Roma and the French Football Federation

BRUSSELS: US sportswear maker Nike was hit with a $14.14 million (€12.5 million) fine on Monday for blocking cross-border sales of football merchandise of some of Europe’s best-known clubs, the latest EU sanction against such restrictions.
The European Commission said Nike’s illegal practices occurred between 2004 to 2017 and related to licensed merchandise for FC Barcelona, Manchester United, Juventus, Inter Milan, AS Roma and the French Football Federation.
The European Union case focused on Nike’s role as a licensor for making and distributing licensed merchandise featuring a football club’s brands and not its own trademarks.
The sanction came after a two-year investigation triggered by a sector inquiry into e-commerce in the 28-country bloc. The EU wants to boost online trade and economic growth.
European Competition Commissioner Margrethe Vestager said Nike’s actions deprived football fans in other countries of the opportunity to buy their clubs’ merchandise such as mugs, bags, bed sheets, stationery and toys.
“Nike prevented many of its licensees from selling these branded products in a different country leading to less choice and higher prices for consumers,” she said in a statement.
Nike’s practices included clauses in contracts prohibiting out-of-territory sales by licensees and threats to end agreements if licensees ignored the clauses. Its fine was cut by 40 percent after it cooperated with the EU enforcer.


Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO

Updated 25 June 2019
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Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO

  • ‘What’s happening in the Gulf is definitely a concern’
  • Aramco has no plan to increase its current maximum output capacity of 12 million barrels per day, given sizeable spare capacity

Saudi Aramco concerned over Gulf attacks, has capacity to meet demand: CEO
SEOUL: Saudi Aramco is concerned at recent actions in the Gulf but can meet its customers’ needs thanks to its experience and the availability of additional spare capacity, its chief executive said on Tuesday.
“What’s happening in the Gulf is definitely a concern,” Amin Nasser, president and chief executive of Saudi Arabia’s state oil giant, told Reuters in an interview.
“At the same time, we went through a number of crises in the past ... we’ve always met our customer commitments and we do have flexibility and the system availability in terms of available additional spare capacity.”
Recent tanker attacks in the Gulf have raised fears about safety of one of the world’s key shipping routes and pushed up oil prices.
Nasser, who is in Seoul ahead of a visit by Saudi Crown Prince Mohammed bin Salman, said Aramco has no plan to increase its current maximum output capacity of 12 million barrels per day (bpd), given sizeable spare capacity.
“If you look at our production, it is hovering around 10 million barrels per day so we do have additional spare capacity,” he said.
The oil giant is aiming to become a major global gas player, and has been developing its own gas resources as well as eyeing gas assets in the United States, Russia, Australia and Africa.
Nasser said Aramco is in talks to buy a stake in Russian gas company Novatek’s Arctic LNG-2 project, while exploring other investment opportunities in gas.
He confirmed the company is also in discussions about buying a stake in India’s Reliance Industries and in talks with other Asian companies about investments.
“We will continue to explore opportunities in different markets and different companies, and these things take time,” he said.
Nasser said the company, South Korea’s top oil supplier, was looking to increase its crude oil supplies to the country where it has partnerships and investments with South Korean refiners.
Saudi Aramco supplies between 800,000 barrels per day (bpd) and 900,000 bpd to South Korea, the world’s fifth-largest crude importer.