Paperlinx accuses Sappi of violating competition law

Paperlinx has accused supply partner Sappi Europe of restricting its market share through unfair trading practices.

Paperlinx and its German subsidiary lodged a complaint yesterday with the German Federal Cartel Office.

The complaint alleged that Sappi has committed "ongoing infringements of European Union and German competition law", according to Paperlinx.

It also said that these alleged infringements have had "a serious impact on Paperlinx's ability to compete to win new business and to increase its market share", according to Paperlinx.

Paperlinx alleged that "Sappi restricts the customers to whom Paperlinx is able to make indent sales".

[Related: More news about legal disputes]

Indent sales involve Sappi supplying paper directly to Paperlinx's end clients, but with Paperlinx bearing the commercial risk.

According to the complaint, Sappi has allegedly provided less attractive pricing or delivery terms when Paperlinx has refused to identify the end client or when Sappi has preferred to supply the end client through a different paper merchant.

The complaint also alleged that Sappi has "effectively assigned customers between paper merchants" and thereby restricted Paperlinx's ability to trade freely under EU and German competition law.

"Paperlinx has thus over the years been forced into the practice of having to provide customer names to Sappi as the only way to gain competitive prices and has been restricted in its ability to provide competitive quotes to the customers of other paper merchants who are also supplied by Sappi," according to Paperlinx.

Sappi Australia declined ProPrint's request for comment.

[Related: Ups and downs of Paperlinx]

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