Dutch consumer watchdog investigating another electronics firm for price fixing

The Netherlands Authority for Consumers and Markets (ACM) will investigate whether an internationally active manufacturer of information technology equipment made prohibited agreements with its distributors. The ACM did not name the manufacturer, but said it suspects the company and distributors jointly determined which retailers may supply products to different customers, and at what price, the watchdog said on Monday.

In the current investigation, the ACM is also examining whether the manufacturer may be abusing its dominant position. The regulator also suspects that retailers are limited in their ability to sell second-hand and refurbished equipment. As part of the case, the ACM raided various companies in the Netherlands and Belgium, together with the Belgian competition authority.

The regulator can impose sanctions, including fines, on companies if the investigation shows that they have violated rules. The ACM recently handed electronics manufacturer LG a fine of almost 8 million euros for violating rules about price fixing when it came to their television sales. The company urged stores and online shops to follow LG’s pricing guidelines. Samsung was also previously fined 39 million euros for similar violations.

When companies coordinate their sales prices together and divide customers, this can result in higher prices for everyone, and poorer service, the ACM said. In this current case, customers are further restricted when purchasing second-hand devices, the regulator stated.

The ACM called the situation “undesirable,” also because reusing items is better for the environment.