Nestle Settles French Antitrust Probe Over Nespresso Capsules

Law360, New York (April 17, 2014, 6:08 PM EDT) -- Nestle SA’s Nespresso has bowed to pressure from the French Competition Authority to curb practices that the agency said prevented competitors from making coffee capsules for the company’s popular espresso machines, the watchdog announced Thursday.

Nespresso has agreed to refrain from discouraging the use of competitors’ capsules and will also extend the warranty on its coffee machines even if a customer has used non-Nespresso capsules, the authority said.

The Competition Authority accused Nespresso of re-engineering its machines, restricting its product guarantees and publicly deriding its competitors' products, all to push consumers toward the company's own capsules in a bid to retain...

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