Update – Court Upholds Judgement Against Michelin

The European Court of First Instance has dismissed the appeal by Michelin and upheld the 19.76 million Euro fine imposed by the EC. The Commission had found that Michelin’s system of rebates and bonuses tied dealers illegally and prevented other tyre manufacturers from operating effectively in the French market by impeding normal competition. The court said that quantity rebates, calculated up to a year after the purchases were made, were unfair as dealers could not determine the real purchase price of the tyres.

Michelin had appealed both the decision and the level of the fine, denying that discounts and rebates induced loyalty and disputing the economic analysis of the Commission. However, the court found that Michelin had offered no economic justification for its discount system and the level of the fine reflected the “lasting and harmful effect on consumers”.