American sportswear company Nike is said to face a sanction of $14 million for blocking cross border sales of its merchandise by the European Union.
The European Commission, which oversees EU’s activities, said Nike’s illegal practices occurred between 2004 to 2017.
It said the practices were related to licensed merchandise for FC Barcelona, Manchester United, Juventus, Inter Milan, AS Roma and the French Football Federation (FFF).
The European Union case focused on Nike’s role as a licensor for making and distributing licensed merchandise featuring a football club’s brands and not its own trademarks.
The sanction came after a two-year investigation triggered by a sector inquiry into e-commerce in the 28-country bloc.
“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 EU wants to boost online trade and economic growth.