Nike Faces $14 Million USD Fine for Blocking Cross-Border Sales of Soccer Goods

The illegal practices included licensed product for FC Barcelona, Manchester United, Juventus and more.

By
Fashion
4,682 Hypes 5 Comments

After its stock took a hit last week amid a disappointing North American Q3 sales performance, Nike now faces a €12.5 million EUR ($14 million USD) fine for blocking cross-border sales of soccer goods. The European Commission slapped the athletic brand with the sanction on Monday (March 25) after a two-year e-commerce investigation into the 28 countries in the European Union.

According to the European Commission, Nike’s illegal practices encompassed licensed product for FC Barcelona, Manchester United, Juventus, Inter Milan, A.S. Roma and the French Football Federation over the course of 2004 to 2017. The sportswear company was said to have clauses in its contracts that prohibited out-of-territory sales by licensees and threatened to end certain deals if licensees did not abide by these clauses. These actions were believed to have been put into effect to drive up costs on products such as bags, bed sheets, mugs and stationery.

“Nike prevented many of its licensees from selling these branded products in a different country leading to less choice and higher prices for consumers,” stated European Competition Commissioner Margrethe Vestager.

The fine was cut down by 40 percent after Nike agreed to cooperate with the EU.

For more fashion news, check out Nike and Manchester City’s new special-edition jersey.

Read Full Article

What to Read Next

Nike Air Force 1 Receives a Stained Glass Window Premium Update
Footwear

Nike Air Force 1 Receives a Stained Glass Window Premium Update

A regal new take on the classic.

Ariana Grande's 'thank u, next' Hits 2 Billion Spotify Streams
Music

Ariana Grande's 'thank u, next' Hits 2 Billion Spotify Streams

Making her the first woman to have three albums to do so.

Watch Migos Perform at the 2019 Kids’ Choice Awards
Music

Watch Migos Perform at the 2019 Kids’ Choice Awards

DJ Khaled also gets slimed.


Here's What Went Down at Mercedes-Benz's Innovative EQ Home Pop-Up at SXSW
Automotive 

Here's What Went Down at Mercedes-Benz's Innovative EQ Home Pop-Up at SXSW

Presented by Mercedes-Benz
Electrifying Austin.

Tyler, The Creator Attended Kanye West's Most Recent Sunday Service
Music

Tyler, The Creator Attended Kanye West's Most Recent Sunday Service

Before the police were called for a noise complaint.

Haas Brothers & L'OBJET Link for Whimsical, Joshua Tree-Inspired Home Collection
Design

Haas Brothers & L'OBJET Link for Whimsical, Joshua Tree-Inspired Home Collection

65 pieces including incense burners, candle holders, tableware and more.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We noticed you are using an ad-blocker

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.