European Commission probes Nike and Universal Studios
The European Commission has begun competition investigations into the licensing and distribution practices of Nike, Universal Studios and Sanrio, the licensor of the Hello Kitty brand.
Announced yesterday, June 14, the investigations will look into whether the three companies’ practices illegally restrict traders from selling licensed merchandise across borders and online within the EU single market.
In May, the Commission adopted the final report on the e-commerce sector inquiry as part of the mid-term review of the Digital Single Market strategy.
During the inquiry, the Commission gathered evidence from nearly 1,900 companies operating in the e-commerce sector for consumer goods and digital content.
The investigations into Nike, Universal Studios and Sanrio were opened because the Commission aims to tackle “potential barriers to online and offline cross-border trade stemming from licensing practices implemented by the companies”.
According to a release from the Commission, the investigations will look into the licensing and distribution of merchandise branded with Barcelona Football Club and Hello Kitty logos, among others.
Nike is the licensor of rights for Barcelona’s merchandise.
Commissioner Margrethe Vestager, in charge of competition policy, said: “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 Commission will investigate whether the three companies, in their role as licensors of rights for the merchandise, may have breached EU competition rules by restricting the licensees’ ability to sell licensed merchandise.
“These practices may ultimately harm consumers by preventing them from benefiting from greater choice and lower prices, both online and offline,” said the release.
A Nike spokesperson said: “Nike is aware of the European Commission’s investigation and will continue to cooperate with the authorities.”
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