Buy Dornbracht Online
This year, online voting will start on January 26. Voting will be possible until February 17. On February 18, the winners will be announced by ArchDaily. Three further editions of the award cover the regions of China, Latin America and Brazil and are also supported by Dornbracht.
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On 13 November 2013, the Düsseldorf Higher Regional Court ("OLG Düsseldorf") issued a judgment on an action for damages following restrictions of online sales.1 The judgment is noteworthy for several reasons: It concerns a stand-alone damage claim for a vertical infringement, which was terminated in a settlement between Dornbracht and the German Federal Cartel Office (Bundeskartellamt, "FCO"). The judgment provides also guidance on the standards of proof for plaintiffs claiming lost profit following a competition law infringement. And, lastly and most remarkably, the OLG Düsseldorf clears the way for holding managers personally liable for compensating losses caused by competition law infringements of a company. The complaint by the defendant was recently rejected by the German Federal Court of Justice ("BGH").2
Plaintiff is Reuter, a German retailer of bathroom fittings with two physical as well as several online stores. Reuter claims damages from a manufacturer of bathroom fittings ("Dornbracht"), and one of its managing directors ("Managing Director") for restrictions of online sales. Reuter sells Dornbracht products which it obtained not directly from the manufacturer but from wholesalers.
In 2008, Dornbracht amended its wholesaler contracts in the course of a so-called "Action against online marketing" and a so-called "Strengthening of specialist retailing"-campaign, respectively. Dornbracht introduced new conditions granting its wholesalers additional rebates if they supply retailers that fulfill certain quality criteria. These criteria could only be met when selling to specialized trade with a physical presence (Fachhändler). Namely, retailers were required to offer a quality level of service that comprised the consulting of costumers, installation, after sales care, etc. Online retailers could not meet these criteria with the consequence that wholesalers would only supply them at higher prices. Dornbracht's campaign was caused by the Managing Director being responsible for the distribution of the company's products.
Following several complaints of online retailers, the FCO opened a proceeding against Dornbracht in 2010 for restrictions of online sales on the basis of dual pricing. After Dornbracht had agreed to amend its contracts with its wholesalers, the FCO terminated its proceeding against Dornbracht in December 2011 and published its reasoning in a case report.3
Due to the lack of a prohibition decision by the FCO, the OLG Düsseldorf had to establish whether Dornbracht's rebate contracts infringed Art. 101 of the Treaty on the Functioning of the European Union ("TFEU").5 The court followed the position of the FCO and the European Commission according to which monetary incentives in order to de facto exclude online distribution is seen as dual-pricing that is prohibited under both European and German competition law.6 The OLG Düsseldorf held that the practices restricted competition by object7 and could not be exempted8.
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