In the News
Fender fined £4.5m for preventing online discounts
23rd January 2020
The Fender Stratocaster - iconic - and until recently not available at a discount online. That's because, as the Competition and Markets Authority (CMA) discovered, Fender had set a minimum price for guitars sold online.
This practice is known as resale price maintenance.
Bear in mind that 40% of guitar sales are online, and you can see that this sort of behaviour is clearly anti-competitive. Factor in that Casio have also been found guilty of this practice and fined £3.7m, and you might argue that Fender's executives should have known better.
This is one of those cases where I wonder if there shouldn't be some criminal liability here; it's not unreasonable to expect executives at Fender to be aware that they were breaking the law.
As a result of Fender’s illegal actions, we fined it £4.5m – the largest imposed in the UK for resale price maintenance.
— Competition & Markets Authority (@CMAgovUK) January 23, 2020
This comes just months after we fined Casio £3.7m for also preventing price discounts for its instruments online.
Read more: https://t.co/BeaUBUqU37 pic.twitter.com/gLqVSCu3lj
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