Morocco’s Competition Council has launched an investigation into the distribution of luxury perfumes and cosmetics, following a complaint from a company in the sector that raised concerns about potential anti-competitive practices.
In a statement, the council said the market for high-end beauty products is highly structured, involving multiple layers of actors, from importers to retailers.
The sector operates under a “selective distribution” system, in which only retailers that meet specific criteria are authorized to sell certain products. These conditions typically relate to store location, service quality and compliance with brand standards.
In many cases, international brands appoint a single distributor in a given country, granting it exclusive rights to supply their products. This limits access for other sellers and concentrates market control among a small number of companies.
The council identified two main operating models. In the first, brands do not sell directly to consumers but rely on selected retailers that meet their standards. In the second, some companies manage the entire chain themselves, handling importation, distribution and direct retail through their own stores.
While this system allows brands to maintain strict control over product presentation and sales conditions, it may also restrict market entry and limit competition for independent retailers.
Authorities highlighted several concerns. These include the possibility that certain retailers receive preferential treatment, such as better pricing or contractual terms, potentially placing competitors at a disadvantage or forcing them out of the market.
The council also raised concerns about “bundling” practices, where retailers are required to purchase certain products to gain access to others.
Additional risks include restricted access to high-demand or limited-edition products, as well as the potential exchange of sensitive commercial information between companies, which could undermine fair competition.
Pricing practices are also under scrutiny. Although prices may be presented as recommendations, the council warned that implicit or explicit pressure on retailers to adhere to them could limit their ability to set prices independently.
After presenting its preliminary findings to the companies involved, the government representative and the complainant, the firms opted to enter a legal procedure that allows them to propose remedies rather than face immediate sanctions.
As part of this process, the companies submitted a series of voluntary commitments aimed at improving market competition. These include separating wholesale activities from retail operations and introducing clearer, standardized contracts to ensure transparency for all retailers.
They also proposed measures to guarantee fair access to exclusive or limited-edition products for all eligible retailers.
The companies further committed to ending practices that could distort competition, including tying product purchases and sharing sensitive business information.
They also pledged not to impose, directly or indirectly, resale prices, allowing retailers full freedom to set their own pricing and promotional strategies.
These proposed commitments have been made public to allow interested parties to review and submit feedback. Stakeholders have 30 days, until June 8, 2026, to provide comments.
Following the consultation period, the Competition Council will assess the feedback and decide whether to approve the commitments and make them legally binding. If approved, the case will be closed.
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