Topic: A good instrument for a good price ?

[Bissig]

Bundeskartellamt imposes fines on manufacturers and retailers of musical instruments
Date of issue: 05.08.2021

The Bundeskartellamt has imposed fines totalling approx. 21 million euros on three manufacturers and two retailers of musical instruments and on staff responsible. The manufacturers and retailers are accused of resale price maintenance and the retailers also of agreeing on horizontal price-fixing in several cases.

The manufacturers (respectively their distributors) are Yamaha Music Europe GmbH, Rellingen, Roland Germany GmbH, Rüsselsheim and Fender Musical Instruments GmbH, Düsseldorf. The retailers are Thomann GmbH, Burgebrach and MUSIC STORE professional GmbH, Cologne.

The proceedings were initiated in April 2018 with a dawn raid following tip-offs from market participants.

Andreas Mundt, President of the Bundeskartellamt: "“For years manufacturers and retailers of musical instruments have systematically endeavoured to restrict price competition for the end consumer. The manufacturers asked at least the leading specialist retailers Thomann and Music Store not to undercut fixed minimum sales prices, which they did in many cases. In addition, in individual cases the retailers agreed among one another on price increases for individual products. With the fines it has imposed the Bundeskartellamt is sending a clear signal not just to the companies concerned but also to the entire musical instrument sector that violations of the prohibition of resale price maintenance and price-fixing agreements will not be tolerated.”"

[Joe H]

For those of us that do not know what Bundeskartellamt is, here is some information on the organization:

https://www.bundeskartellamt.de/EN/AboutUs/Bundeskartellamt/bundeskartellamt_node.html#:~:text=The%20Bundeskartellamt%20is%20an%20independent%20competition%20authority%20whose,against%20Restraints%20of%20Competition%20%28German%20Competition%20Act%2C%20GWB%29?msclkid=18527315c56311ec9ca604c1bad5de19

Joe H

[Joe H]

I think the manufacturers call it MRP (minimum retail price).  Stores that sell on eBay get around this issue by selling new instruments as "open box" items or "display models".  I have bought open box items that are new (the box was never opened).  This practice is not limited to just musical instruments, but also electronic devices of all sorts like headphones, USB hubs, etc.

Joe H

[Bissig]

The UK’s Competition and Markets Authority has issued warnings to over 70 other music manufacturers and retailers.
Korg Volca Mix

Following a formal accusation from the Competition and Markets Authority (CMA) in March 2020, Roland and Korg have been fined a total of £5.5 million for implementing resale price maintenance (RPM). Additionally, UK pro audio retailer, GAK, has been fined over a quarter of a million pounds for engaging in RPM with Yamaha. According to the CMA, this brings the total fines for this illegal conduct to £13.7 million in the music manufacturing market. Previous cases include Casio and Fender, who were fined £3.7m and £4.5m, respectively.