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France: Nestle agrees to let rivals compete

By  |  September 4, 2014

Nestle has reportedly surrendered to pressure from competition authorities in France to lower barriers to entry to its coffee rivals.

According to reports, Nestle’s Nespresso capsule coffee business will allow competitors’ coffee pods to be compatible in Nestle’s machines. Reports say that compatibility will extend beyond France.

Nestle had previously sued several of its rivals that offered cheaper capsules for its machines, claiming patent infringement. Nestle first agreed in April to lift certain barriers to competitors.

But an agreement reached with French antitrust regulators on Thursday includes concessions that go even further, authorities said. Among those agreements, reports say, is Nestle’s vow to honor warranties on its machines even if consumers use competing coffee pods.

Full content: Reuters

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