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Brussels moved to take Howdy Kitty off the leash on Tuesday, fining Japanese firm Sanrio €6.2m for imposing unfair restrictions on cross-border gross sales of merchandise that includes the well-known character.
The European Fee mentioned that Sanrio, which owns the mental property for Howdy Kitty, had imposed unlawful contract phrases on European corporations that purchased licences to place the character on luggage, garments and different merchandise.
Particularly, Sanrio banned licence holders from promoting exterior of their explicit EU nation, and in addition took extra oblique measures resembling proscribing the languages that might be used on the merchandise. Brussels mentioned that the unlawful curbs, which flout single market guidelines, have been in place from 2008-18.
Margrethe Vestager, the EU’s competitors commissioner, mentioned that the choice “confirms that retailers who promote merchandise beneath license can’t be prevented from promoting overseas.”
“When customers purchase a Howdy Kitty mug, or a Chococat toy, they will any more absolutely reap the advantages of one of many foremost benefits of the only market.”
Brussels mentioned that Sanrio had absolutely co-operated with the investigation and had “explicitly recognised” the breaches of EU competitors guidelines. This led the fee to scale back the effective by 40 per cent, leaving €6.2m to pay.
The choice is one consequence of a broader probe that Brussels has performed into cross-border licensing. The fee in March fined Nike €12.5m for unlawful restrictions it imposed on cross-border gross sales. The antitrust enforcer can be investigating Common Studios.
