A PYMNTS Company

UK Music Firms Illegally Prevented Discounts, CMA Alleges

By  |  March 24, 2020

The Competition and Markets Authority (CMA) has provisionally found that 2 more suppliers of musical instruments broke competition law by restricting online discounting for their products.

The CMA has today on Tuesday, March 24, issued separate Statements of Objections to Roland (UK) Limited (Roland) and Korg UK Limited (Korg), which supply electronic drum kits, and hi-tech music equipment and synthesizers to UK retailers, respectively.

The CMA has provisionally decided that both companies operated policies restricting online price competition. The CMA provisionally considers that Roland required its electronic drum kits to be sold at or above a minimum price between January 2011 and April 2018, while Korg did the same for its specialist equipment such as synthesizers and DJ production tools, from June 2015 to April 2018.

This illegal practice, known as resale price maintenance (RPM), aims to prevent retailers from offering lower prices – meaning there are few discounts available, even when people shop around. The CMA’s investigations into Roland and Korg follow recent fines issued to the keyboard supplier Casio and the guitar maker Fender for similar behavior.

Full Content: Gov UK

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.