The French Competition Authority examines the competition effects of category management
The French Competition Authority -Autoritè de la Concurrence- or FCA has recently published its opinion on competition effects that category management arrangements are expected to have ( Avis n. 10-A-25 of 7 December 2010 ) . Apart from the recent European Commission’s Guidelines on Vertical Restraints, which contains a brief section on competition impact of category management, this is the first time that a European competition regulator deals at length with the issue of the implications that reliance on this marketing tool may have on competition in retail markets. The opinion of the FCA, however, must be read with the caveat that its assessment was focused, logically, on the likely effects of category management in the French retail markets. In this regard, it notes that within the category management arrangement used in the French market retailers keep the last word on their marketing policies, while the captain only gives non-binding recommendations to them. Importantly, this t