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War pods Nespresso ordered to compensate a competitor

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War pods Nespresso ordered to compensate a competitor

Nespresso is ordered to compensate ECC, another coffee capsules provider.

REUTERS / Denis Balibouse

Four years ago, the war rages pods. The Swiss manufacturer of coffee pods Ethical Coffee Company (ECC) has been successful with the Paris Commercial Court against Nespresso he accused of unfair competition.

Nespresso France, Nestlé Nespresso Nestlé SA, the parent company were sentenced to pay him the sum of 500 000 euros, as ruled Friday. Added to a payment of 40,000 euros to cover attorney fees, accurate judgment. The brand of the Nestlé Group intends to appeal the ruling.

Market opening

ECC, which sells coffee pods in France since 2010, had filed a complaint against Nespresso in December 2012, accusing him of denigrating its capsules through Nespresso club, its customer service. ECC estimated that Nespresso had, through this club, instilled doubts in the public mind about the compatibility, quality, biodegradability or the safety of its capsules.

Nespresso, which carved the lion's share of this high margin, has seen its share of contested market in recent years by the arrival of new competitors. Mid-April, Nespresso France is committed to the Competition Authority to change its practices in order to further open up the French market for portioned coffee, in particular by providing three months ahead of the changes on its machines but also by avoiding any comment on the caps of its competitors including within the Nespresso club.

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