The downward price pressure on Blu-ray technology looks set to increase after the US Justice Department announced an investigation into some of the key players in the optical drive market.
Sony, Toshiba and Hitachi are all facing a probe to determine if they wield too much power in the market for optical drives, essentially meaning DVD and Blu-ray hardware.
Precedent set
The inquiry comes after a previous US drive to root out price-fixing by firms such as LG and Hitachi in the supply of LCD TVs and components. In that case, several companies admitted working together to manipulate the market.
While stakes are high for the businesses concerned, the immediate impact of a successful inquiry is likely to be cheaper price tags on Blu-ray hardware on shop shelves.
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non2233
December 2nd 2009
2. CRESTA FURNITURE COMPLAINS TO OFFICE OF FAIR TRADING ABOUT PRICE FIXING OF NATUZZI FURNITURE
Retailer notifies competition watch-dog about “consumers being ripped-off”
Preston furniture retailer Cresta Furniture Limited has today complained to the Office of Fair Trading that consumers are paying artificially inflated prices for Natuzzi furniture because of unlawful price fixing arrangements operated in the United Kingdom by the Italian furniture manufacturer.
The Office of Fair Trading has been provided with evidence of how Natuzzi took steps to ensure that consumers could not obtain furniture at prices lower than those set by Natuzzi, including a secret recording of a meeting of distributors in Manchester on 9 April 2008 where Natuzzi sought agreement that consumers would not be offered Natuzzi furniture at prices less that the recommended retail price less 20%.
Cresta has also brought a claim against Natuzzi for unlawful price fixing as Natuzzi has tried to stop Cresta selling its furniture at prices lower than those set by Natuzzi. At a hearing in the High Court Mr Justice Briggs remarked to Cresta’s legal advisors “Take it as read that your materials have thus far persuaded me that it is an arguable case that they are trying to force you as a reluctant independent into a price fixing arrangement which they wish to have in place with all their UK distributors…..”
Cresta has distributed Natuzzi furniture for the last seventeen years. “We have always sought to provide our customers with what they want – high quality furniture at the best price” remarked Cresta spokesman Neil Stewart `We believe in the benefits of free competition, price fixing is unlawful, Cresta will not be party to ripping off customers`
The Office of Fair Trading has the power to investigate and fine any company engaging in unlawful price fixing. Consumers who have suffered loss as a result of unlawful price fixing may seek compensation for their loss. “Thousands of consumers may have paid thousands of pounds more than they needed to for the Natuzzi furniture that they have bought. We have asked the Office of Fair Trading to take immediate action to end unlawful price fixing by Natuzzi. Consumers must be protected” remarked Mr.Stewart.
Natuzzi SpA is Italy’s largest furniture manufacturer with a turnover of €660m. Cresta is an independent retailer based in Preston, Lancashire .Natuzzi sells its furniture through Harrods, Selfridges, House Of Fraser, Barker and Stonehouse, Natuzzi owned stores and various other independent retailers.
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007
November 3rd 2009
1. They should try to reduce the price of mandatory AACS license fees too for Blu-ray content makers.
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