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Nike is fined £10 million for breaking European competition laws

Nike has been fined 12.5 million euros (£10.7 million) by the European Commission for breaching competition rules on the sale of football merchandise.

The sportswear giant banned traders from selling licensed merchandise for clubs including Barcelona, Manchester United and Juventus to other countries within the European Economic Area.

This, said EU competition commissioner Margrethe Vestager, was in breach of antitrust rules and led to higher prices for consumers.

She said: "Football fans often cherish branded products from their favourite teams, such as jerseys or scarves. Nike prevented many of its licensees from selling these branded products in a different country, leading to less choice and higher prices for consumers.

"This is illegal under EU antitrust rules. Today's decision makes sure that retailers and consumers can take full advantage of one of the main benefits of the single market: the ability to shop around Europe for a larger variety of products and for the best deals."

The commission found that Nike's practices were in force for 13 years up to 2017 and effectively "partitioned" the single market.

However, it granted Nike a 40% fine reduction after the US company co-operated with the investigation "beyond its legal obligation to do so".

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