Thursday, October 20, 2011

Is Nikon violating US antitrust laws?

According to Nikon Rumors, as of October 16, Nikon has installed a new (worldwide) pricing policy that requires all authorized outlets stick with base prices that are set by Nikon.

Sure enough, prices jumped at all major photo retailers. For example, you could previously find the D5100 body only kit for under $600.  Now, officially the minimum advertised price is fixed at $649 ($749 - $100 instant rebate).




So does this violate US (and EU) antitrust laws?  It could be.  The Department of Justice has established guidelines to determine unlawful conditions of price-fixing:

  • Agreements to establish or adhere to uniform price discounts;
  • Agreements to eliminate discounts to all customers or certain types of customers;
  • Agreements to adopt a specific formula for the computation of selling prices;
  • Agreements on terms and conditions of sale, including uniform freight charges, quantity discounts, or other differentials that affect the actual price of the product;
  • Agreements not to advertise prices or to refuse to sell the product through any bidding process.
Unfortunately, until the DOJ receives a complaint, we won't know if there is a per se violation of the Sherman Antitrust Act...stay tuned.

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