Thursday 23 January 2020

CMA fines Fender for restricting online sales of guitars




CMA fines Fender for restricting online sales of guitars



The Competition and Markets Authority (CMA) has imposed a £4.5 million fine on Fender Musical Instruments Europe for violations of EU and UK competition law by engaging in online resale price maintenance (RPM) of its guitars.

The penalty includes a 60% discount under the CMA’s leniency programme and a further 20% discount to reflect settlement.

The fine is the largest that the CMA has imposed to date in respect of RPM and follows its decision to fine Casio £3.7 million for similar practices in relation to digital pianos and keyboards.

More generally, the decision affirms the CMA’s tough stance to RPM infringements.  Since 2016, the CMA has fined a number of companies for online RPM in the light fittings, bathroom fittings and commercial refrigeration sectors. In 2018 the CMA issued 4 advisory letters and 34 warning letters about resale price maintenance.

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