NKE Nike Inc

   By Donato Paolo Mancini 
 

The European Union has fined Nike Inc. (NKE) 12.5 million euros ($14.12 million) for restricting sales of licensed merchandising products across the EU single market, European antitrust authorities said Monday.

Nike, beyond the design and sale of athletic wear, acts as a licensor for intellectual property rights of brands like football clubs or federations. As such, it grants licenses to third parties, who can then manufacture and distribute those products.

Authorities opened an investigation in 2017, and they have since found Nike limited out-of-territory sales by licensees, enforcing indirect measures to do so. In essence, the EU said, Nike worked to prevent sales from member state to member state.

These measures included threats to end contracts, the EU said. The company also acted to ensure retailers stopped purchasing these products. Nike's illegal practices lasted for 13 years and affected brands included F.C. Barcelona, Manchester United, Juventus and others.

Nike co-operated with authorities beyond its legal obligation to do so and received a 40% reduction in the fine, said authorities.

The company didn't immediately respond to a request for comment.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com; @donatopmancini

(END) Dow Jones Newswires

March 25, 2019 07:48 ET (11:48 GMT)

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