EU’s fine on Google in the size of $5 billion has been followed by a wave of penalties against huge corporations. It turns out that the European Commission has issued a fine against four big manufacturers of consumer electronics – Asus, Denon & Marantz, Philips, and Pioneer. The reason for the fines – fixing online resale prices. The total amount of the fines is more than $130 million but it has been reduced since the companies cooperated with the EU authorities.
millions of European Consumers Faced Higher Prices for a Range of Products
As reported, Commissioner Margrethe Vestager, in charge of competition policy, said the following:
The online commerce market is growing rapidly and is now worth over 500 billion euros in Europe every year. More than half of Europeans now shop online. As a result of the actions taken by these four companies, millions of European consumers faced higher prices for kitchen appliances, hair dryers, notebook computers, headphones and many other products. This is illegal under EU antitrust rules. Our decisions today show that EU competition rules serve to protect consumers where companies stand in the way of more price competition and better choice.
The four companies were involved in the so-called “fixed or minimum resale price maintenance (RPM)” by restricting the ability of their online retailers to set their own retail prices for widely used consumer electronics products like kitchen appliances, notebooks and hi-fi products.
On top of this, it appears that the four “manufacturers intervened particularly with online retailers, who offered their products at low prices”.
If those retailers did not follow the prices requested by manufacturers, they faced threats or sanctions such as blocking of supplies. Many, including the biggest online retailers, use pricing algorithms which automatically adapt retail prices to (Read more...)
*** This is a Security Bloggers Network syndicated blog from How to, Technology and PC Security Forum | SensorsTechForum.com authored by Milena Dimitrova. Read the original post at: https://sensorstechforum.com/130-million-fine-asus-philips-pioneer-resale-prices/