Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Online retailer pleads guilty for conspiring to fix wall poster prices, (Aug 12, 2016)
Organizations Mentioned:Trod Ltd.
By Greg Hammond, J.D.
Trod Ltd. has pleaded guilty to Department of Justice Antitrust Division charges that the company engaged in a price fixing conspiracy in the online wall décor industry through the use of algorithm-based pricing software (U.S. v. Aston, Criminal No. 3:15-cr-00419-WHO).
According to the indictment, between September 2013 and January 2014, Trod and executive William Aston participated in a conspiracy to fix the prices of certain posters sold online through Amazon.com, Inc.’s Amazon Marketplace. They allegedly used commercially-available algorithm-based pricing software to set the prices. The software collected competitor pricing information for a specific product and applied certain pricing rules. In addition, the defendants allegedly discussed poster prices with co-conspirators and agreed to adopt specific pricing algorithms with the goal of coordinating prices.
"E-commerce is among the fastest growing segments of our economy," commented Acting Assistant Attorney General Renata Hesse for the Antitrust Division. "For this robust growth to continue, customers must be confident that they will receive the same benefits of vigorous competition on the web as they do at brick-and-mortar stores. We will continue to ensure that happens by investigating and prosecuting schemes that harm online shoppers."
U.K. investigation. Trod, a U.K. company based in Birmingham, England, faced a similar investigation by the U.K. Competition and Markets Authority. Trod admitted to agreeing with one of its competing online sellers—GB Eye Limited—that they would not undercut each other’s prices for posters and frames sold on Amazon’s U.K. website. This agreement was implemented by using automated re-pricing software, which the parties each configured to give effect to the illegal cartel. Trod agreed to accept a fine of £163,371.
Companies: Trod Ltd.
News: Antitrust AntitrustDivisionNews