Question 6 Light Corporation is a US manufacturer of laser printers and copiers. They have a market share in the EU of 35%. Their main rival is a Russian firm which makes similar products and which has a market share in the EU of 48%. Both firms advertise widely in the trade press in the EU and have announced price rises of their wholesale products some weeks before they take effect. Light Corporation has a trade agreement with a French company, Lumière. Light licences to Lumière the Light trademark for France and promises that it shall use its best endeavours to ensure that the sole distributor of Light laser printers and copiers in France will be Lumière. As part of its customer service Lumière carries out services and repairs on the Light printers and copiers. However, there have been many complaints directly to Light about the poor quality of this service and, as a result, Light has stopped supplying its spare parts to Lumière. These parts are specifically made by Light alone, which holds a patent on their manufacture, and Lumière cannot source them from elsewhere. Discuss any breaches of competition law which may have occurred.
Posted on: Thu, 20 Mar 2014 08:30:42 +0000
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