19. 8. 92 Official Journal of the European Communities No L 236/11 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 24 July 1992 relating to a proceeding under Article 85 of the EEC Treaty (Case No IV/33.542 — Parfums Givenchy system of selective distribution) (Only the French text is authentic) (92/428/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation No 17 of 6 February 1962, first Regulation implementing Articles 85 and 86 of the Treaty (), as last amended by the Act of Accession of Spain and Portugal, and in particular Articles 6 and 8 thereof, Having regard to the application for exemption submitted by Parfums Givenchy SA on 19 March 1990 in respect of a standard-form selective distribution contract which the company has drawn up for the retail sale of its products in the European Economic Community, Having regard to the summary of the notification published pursuant to Article 19 (3) of Regulation No 17 (y, Having consulted the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas : I. THE FACTS A. The undertakings Parfums Givenchy SA (‘Givenchy’) Levallois-Perret, France, forms part of the Louis Vuitton Moé&t-Hennessy () OJ No 13, 21. 2. 1962, p. 204/62. () OJ No C 262, 8. 10. 1991, p. 2. group whose activities include luxury perfumery products, leather goods, luggage and accessories, champagnes and wines, cognac, spirits, haute couture and fashion accesso- ries. The group controls other companies operating in the same market as Givenchy, namely Parfums Christian Dior and Parfums Christian Lacroix. The net consolidated turnover of the Louis Vuitton Moét-Hennessy group in 1991 was FF 22 billion. In the same year, Givenchy achieved a net consolidated turnover of FF 889 million, of which FF 430 million derived from its activities in the Community. The retail sale of Givenchy cosmetic products in the Member States is carried out by a network of authorized retailers, whose contractual conditions are laid down in the agreement to which this proceeding relates. B. Distribution structure and position of Givenchy on the market Cosmetic products cover a wide variety of articles intended for many different uses and include, in parti- cular, perfumery, skin care and beauty products and hair- care and toiletry products. A study carried out for the Commission (*) confirms that, within the overall category of cosmetic products, luxury products constitute a specific market segment. Luxury cosmetic products are high- quality articles, sold at a relatively high price and marketed under a prestige brand name. The extent to which they are substitutable for similar products falling within other market segments is generally limited. () ‘Les systémes de distribution sélective dans la Communauté du point de vue de la politique de la concurrence : le cas de l'in- dustrie des parfums et des produits cosmétiques, André-Paul Weber 1988.