Synthesizers and hi-tech equipment: anti-competitive practices 50565-4
The CMA found anti-competitive practices in the synthesizers and hi-tech equipment sector which infringed Chapter I CA98 and/or Article 101 TFEU.
Case timetable
| Date | Action |
|---|---|
| 9 July 2020 | Non-confidential infringement decision, and related materials, published |
| 29 June 2020 | Infringement decision issued to party and settlement announced together with wider musical instruments sector compliance communications concerning resale price maintenance. |
| May 2020 | Party offered to settle investigation with CMA. |
| March 2020 to June 2020 | Receipt and consideration of representations on the statement of objections. |
| 24 March 2020 | Statement of objections issued. |
| March 2019 to March 2020 | Further investigation including information gathering. CMA analysis and review. |
| March 2019 | Decision taken to proceed with the investigation. |
| April 2018 to March 2019 | Initial investigation: information gathering, including issue of formal or informal information requests to parties. CMA analysis and review of information gathered. State of play meetings with parties under investigation. |
| April 2018 | Investigation opened |
Non-confidential infringement decision, and related materials
9 July 2020: The CMA has published a non-confidential version of the decision in this case, in which Korg was fined £1.5 million for breaking competition law by engaging in resale price maintenance (RPM).
- (9.7.20)
To help the musical instruments industry learn the lessons from this investigation, the CMA has published a case study on this case.
Settlement, infringement decision and follow-up compliance work
29 June 2020: The CMA issued a decision finding that Korg (UK) Limited (Korg UK) infringed competition law by engaging in resale price maintenance (RPM). The CMA imposed a fine of around £1.5 million. As the ultimate parent company of Korg UK, Korg Inc. is jointly and severally liable for Korg UK’s fine. The fine includes a 20% discount to reflect savings due to the companies’ admissions and their co-operation with the CMA under a settlement agreement.
- Press release: Musical instrument firms to pay millions after breaking competition law (29.6.20)
To help the musical instruments industry learn the lessons from the CMA’s investigations, the CMA has published an open letter to suppliers and retailers in the musical instruments sector and case studies on our Fender and Casio investigations and issued a large number of warning letters. These letters signpost guidance for businesses on resale price maintenance and encourage musical instrument suppliers and retailers to review their business practices to ensure they are complying with competition law. Building on its extensive efforts to monitor and address suspected RPM, the CMA has also launched its own in-house price monitoring tool aimed at deterring companies from entering into agreements restricting online discounting. Find out more in our blog.
Statement of objections
24 March 2020: The CMA issued a statement of objections alleging that Korg (UK) Limited (Korg UK) has breached UK and/or EU competition law by restricting retailer freedom to discount the online retail prices of synthesizers and hi-tech equipment supplied by Korg UK.
- Press release: Music firms illegally prevented discounts, CMA alleges (24.3.20)
Case information
On 17 April 2018, the CMA launched an investigation (50565-4) under Chapter I of the CA98 and Article 101 of the TFEU into suspected breaches of competition law by various parties. The investigation related to alleged anti-competitive agreements and/or concerted practices in relation to musical instruments and equipment.
Further details of the CMA’s procedures in Antitrust cases are available in our guidance.
Personal data
The CMA may collect, use and share personal data for its investigations, including investigations under the Competition Act 1998. This includes processing personal data for the purposes of the General Data Protection Regulation and the Data Protection Act 2018.
For more information about how the CMA handles personal information, please see the CMA’s Personal Information Charter.
Contacts
Assistant Director, Antitrust, Simon Deeble (020 3738 6668, simon.deeble@cma.gov.uk)
Project Director, Simon Nichols (020 3738 6368, simon.nichols@cma.gov.uk)
Senior Responsible Officer, Ann Pope (020 3738 6786, ann.pope@cma.gov.uk)
Last updated 9 July 2020 + show all updates
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Non-confidential infringement decision published.
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Settlement, infringement decision and follow-up compliance work announced.
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Statement of Objections issued. Case timetable updated.
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Case timetable updated.
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Case timetable updated - decision taken to proceed with the investigation.
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First published.