The Moroccan Competition Council has initiated a important probe into the luxury perfume and cosmetics industry, responding to allegations that the sector’s rigid distribution models may be stifling market health. This investigation centers on the “selective distribution” system commonly employed by international high-end brands. Under this framework, only retailers meeting stringent criteria regarding store aesthetics, location, and service quality are permitted to stock certain products. While intended to preserve brand prestige, authorities are concerned that these barriers to entry effectively concentrate power within a small circle of elite distributors and importers.(Hespress)
The Council’s analysis highlights two primary business structures that dominate the Moroccan landscape. In one model, global brands rely on a handful of authorized third-party retailers. In the other, companies vertically integrate their operations, controlling everything from the initial import to the final sale in their own branded boutiques. Both models pose risks to independent sellers, who often find themselves locked out of the supply chain or forced to accept unfavorable terms. Concerns have been raised regarding “bundling”—a practice where retailers must purchase less desirable inventory to gain access to popular items—and the potential for preferential pricing that leaves smaller competitors at a distinct disadvantage.
Transparency and price independence are also at the heart of the inquiry. The Council warned that even when retail prices are framed as mere recommendations, implicit pressure from suppliers can prevent sellers from offering competitive discounts to consumers. Furthermore, the exchange of sensitive commercial data between dominant players and the restricted access to limited-edition products have been flagged as behaviors that could artificially inflate market control. These practices collectively threaten to create an environment where the consumer pays a premium not just for the product, but for the lack of a competitive marketplace.
In a move to avoid immediate legal sanctions, the companies involved have entered a procedure to provide voluntary remedies. These proposed commitments include a formal separation of wholesale and retail activities to prevent internal favoritism and the introduction of standardized contracts to ensure all eligible retailers are treated equally. There is also a pledge to end the mandatory tying of products and to guarantee that resale prices are set solely by the retailers themselves. The public and industry stakeholders now have until June 8, 2026, to review these proposals, after which the Competition Council will determine if these changes are sufficient to restore fair play to Morocco’s luxury beauty aisles.
