Antitrust Law Daily Wrap Up, ANTITRUST NEWS: U.K. online seller fined for using anticompetitive automated repricing software, (Jul 25, 2016)
Organizations Mentioned:GB eye Limited | Trod Limited
By Linda O’Brien, J.D., LL.M.
Following an investigation by the U.K. Competition and Markets Authority (CMA), Trod Limited has admitted 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, the CMA has announced. The agreement was implemented by using automated repricing software, which the parties each configured to give effect to the illegal cartel.
Trod, based in Birmingham, and GB eye, based in Sheffield, sold licensed sport and entertainment merchandise and related products, including posters, frames, badges, stickers, and mugs, with popular images from the sports and entertainment world, such as One Direction and Justin Bieber.
The cartel applied to posters and frames sold by both parties on Amazon Marketplace via Amazon’s U.K. website from March 24, 2011, at the latest to July 1, 2015, at the earliest, according to the CMA. Amazon Marketplace is an online retail platform that allows retailers to sell their products directly to end consumers via Amazon’s websites.
As a result of the CMA investigation, Trod has agreed to pay a fine of 163,371 British pounds for taking part in the cartel. Provided it continues to cooperate and complies with the other conditions of the CMA’s leniency policy, GB eye will not receive a fine. GB eye initially reported the cartel to the CMA and cooperated with the investigation, in accordance with the CMA’s leniency policy.
"The Internet is an increasingly important way in which people buy products or services in their everyday lives," said Stephen Blake, Senior Director and head of the CMA’s Cartels and Criminal Group. "Online marketplaces such as Amazon allow sellers to sell their goods directly to consumers, who often benefit from more choice and lower prices as a result. Online pricing tools, such as automated repricing software, can also help sellers compete better, for the benefit of consumers. In this case, however, the parties used repricing software to implement an illegal agreement to deny consumers these benefits."
Companies: Trod Limited; GB eye Limited
News: Antitrust