Fnac Darty: decision from French Competition Authority
(CercleFinance.com) - Fnac Darty takes note of today's decision by the Autorité de la concurrence (French competition authority), having withdrawn its objection to the grievance it was notified of in Q1 2023.
In the case, several players in the household appliance manufacturing and distribution sector received a notification of grievances from the Competition Authority's investigation departments, in which they were accused, amongst other things, of having taken part in a vertical agreement between suppliers and distributors.
Of all the grievances formulated, only one concerned Darty. What's more, this grievance concerned only a limited number of clearly identified product categories, the group says.
Fnac Darty had decided not to contest this grievance and to request the benefit of the so-called settlement procedure, provided for in article L. 464-2 of the French Commercial Code.
The amount of the fine for which Fnac Darty is liable following this settlement procedure is E109m.
As a provision of E85m has already been recorded in Fnac Darty's accounts in Q2 2023, the group will recognise an additional expense of E24m in FY 2024, with no impact on recurring operating income.
The group's short-term financing arrangements will ensure settlement of the transaction, which is expected to take place in 2025, it adds.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
In the case, several players in the household appliance manufacturing and distribution sector received a notification of grievances from the Competition Authority's investigation departments, in which they were accused, amongst other things, of having taken part in a vertical agreement between suppliers and distributors.
Of all the grievances formulated, only one concerned Darty. What's more, this grievance concerned only a limited number of clearly identified product categories, the group says.
Fnac Darty had decided not to contest this grievance and to request the benefit of the so-called settlement procedure, provided for in article L. 464-2 of the French Commercial Code.
The amount of the fine for which Fnac Darty is liable following this settlement procedure is E109m.
As a provision of E85m has already been recorded in Fnac Darty's accounts in Q2 2023, the group will recognise an additional expense of E24m in FY 2024, with no impact on recurring operating income.
The group's short-term financing arrangements will ensure settlement of the transaction, which is expected to take place in 2025, it adds.
Copyright (c) 2024 CercleFinance.com. All rights reserved.