The Italian Competition Authority (AGCM) has imposed a fine of €25,895,043 on Morellato S.p.A. for engaging in a restrictive agreement affecting the distribution of mid-range jewellery and watches. According to the Authority, the conduct took place between 20 July 2018 and 23 December 2025 within the company’s selective distribution system.
The investigation found that Morellato, one of Italy’s leading manufacturers of mid-accessible (non-luxury) watches and jewellery, imposed restrictions on the pricing practices of its distributors. In particular, the company set maximum discount levels that retailers were allowed to apply when selling products through online channels. These limits were communicated through detailed recommendations indicating the percentages that distributors should apply.
The Authority established that the company monitored the prices charged by distributors on an ongoing basis. When retailers deviated from the indicated discount levels, Morellato reportedly implemented a series of enforcement measures. These included warnings, requests to withdraw discounts, and further actions such as the automatic blocking of orders and Amazon accounts. In some cases, the company also threatened to terminate distribution contracts with retailers that did not comply with its instructions.
The investigation also examined contractual provisions governing online sales. Distribution agreements concluded by Morellato included an explicit clause prohibiting authorized distributors from selling the company’s products on third-party online platforms, including marketplaces such as Amazon and eBay. The Authority found that compliance with this restriction was actively monitored and that violations could lead to threats or retaliatory measures.
According to the AGCM, these practices constituted a vertical agreement that infringed Article 101 of the Treaty on the Functioning of the European Union. The Authority concluded that the conduct involved resale price maintenance and restrictions on distributors’ online activity on marketplaces. It further considered that the restrictions were applied in a discriminatory and disproportionate manner, particularly in light of the fact that Morellato itself operates on online marketplaces.
The Authority found that the practices reduced competition between authorized retailers and limited their autonomy in determining their commercial policies. The decision was announced by the AGCM in Rome on 31 March 2026.
