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ARTICLE · 30 JULY 2018

EU Commission - Resale Price Maintenance In Online Sales Has A Broader Effect

ACTECON
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The European Commission ("Commission") issued a series of penalties and eventually imposed more than EUR 111 million fine to four well known consumer electronics companies, namely Asus, Denon & Marantz, Philips and Pioneer ...

TurkeyAntitrust/Competition Law
Ertuğrul Can Canbolat LL.M.
Ertuğrul Can Canbolat LL.M.
Baran Can Yildirim, LL.M.
Baran Can Yildirim, LL.M.
Öykü Erdil
Öykü Erdil
Author LinkedIn connections

The European Commission ("Commission") issued a series of penalties and eventually imposed more than EUR 111 million fine to four well known consumer electronics companies, namely Asus, Denon & Marantz, Philips and Pioneer as the concerned undertakings have involved in imposition of "fixed or minimum resale prices maintenance (RPM)" on their online retailers, which violates EU competition rules. These undertakings have engaged in the concerned practices mainly by restricting online retailers to set their own retail price for products such as hi-fi products, notebooks and kitchen appliances. The Commission has established that the resale price maintenance in online sales has a broader effect than the effect on the direct relationship between the supplier, retailer and consumer. This is because the price algorithm software that the online retailers use matches the retailers' price with the one of the competitors, which spread the effect among many online retailers.

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