Tuesday, 30 June 2020

CMA fines musical instrument makers for resale price maintenance


CMA fines musical instrument makers for resale price maintenance

The Competition and Markets Authority (CMA) has fined Roland (U.K.) Limited £4 million for infringing Article 101 TFEU/Chapter I of the Competition Act 1998 by engaging in resale price maintenance (RPM) in the supply of electronic drums.

In a separate infringement decision, it has fined Korg (UK) Limited £1.5 million for RPM in the supply of synthesizers and hi-tech equipment.

The CMA issued a statement of objections to the retailer GAK and Yamaha Music Europe alleging RPM.  Yamaha will receive full immunity while GAK has settled with the CMA and agreed to pay a maximum fine of £278,945.

The CMA has also published an open letter to suppliers and retailers in the musical instruments sector as part of its initiatives to crack down on infringements in the sector.  The guidance builds on case studies and experience in other investigations involving Fender and Casio.  The CMA has also developed an online pricing tool to help it detect online unlawful pricing activity.



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