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Nespresso agrees with French regulator to allow rivals make coffee pods

DBR Staff Writer Published 08 September 2014

Nestlé Group's Nespresso has reached an agreement with French Competition Authority (AdIC)to pave way for competition by allowing other companies to manufacture coffee pods that are compatible with its machines.

Under the terms of the deal, Nespresso will provide competitors at least four months notice of any technical changes to its machines and enable the companies to test their pods on its prototype machines.

The company will also place a comprehensive employee training program and other tools to reinforce the existing compliance programs and ensure awareness and compliance with all competition related laws.

Nespresso said it would share the information with manufacturers selling outside France as well.

Nestlé Nespresso CEO Jean-Marc Duvoisin said: "We are pleased to reach an agreement with the AdlC and to have agreed a mechanism that enables us to continue innovating for the benefit of the consumers.

"The initiatives that we have agreed demonstrate our ongoing commitment to fair and open competition"

Nespresso has been facing competition from rivals offering cheaper capsules for Nespresso machines. It has sued several firms for infringement of its patent rights.