European Court freezes out Uniliver appeal

Unilever PLC has lost its appeal at the European Court of First Instance against the European Commission's decision to fine the company for stopping its distributors in Ireland from selling competitors' ice creams.

Irish subsidiary of Uniliver, Van den Bergh Foods, provides its distributors with freezers to stock its products, but stopped retailers from stocking competing brands in these refrigerators.

The court ruled: "The provision by Van den Bergh Foods of freezer cabinets 'without charge' to ice cream retailers on condition that they use them exclusively for the stocking of its ice creams is contrary to Community competition law".

Mars complained to the commission which had ruled in 1998 that the contracts between Unilever and its distributors were in breach of antitrust rules and amounted to an abuse of a dominant position.

The case may now have implications for other companies providing point of sale display units such as Coca-Cola, Pepsi and others.