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Computer Wholesaler Fined for Minimal Resale Price Fixing



On 14 May 2009 Competition Council of Latvia (CC) adopted a decision on establishing a prohibited agreement in activities of MOBILUX Ltd. by fixing minimal resale prices for the M-LUX computers it produces. CC imposed a fine on Mobilux Ltd. in the amount of € 4 473.

Violation was detected while carrying out an inquiry of electronic household appliance market – CC found out that MOBILUX Ltd. being both computer producer/wholesaler and an internet shop was setting minimal resale prices for M-LUX computers to its partners (other internet shops). Information on resale prices as well as on possible profit and on elimination of dumping was sent via e-mail.

Since majority of the involved internet shops complied with the prices set by MOBILUX Ltd. CC concluded that MOBILUX Ltd. has managed to keep price level fixed for seven months thus almost entirely destroying price competition between internet shops.

Partners of MOBILUX Ltd. did not disassociate and did comply with the prices set by MOBILUX Ltd. thus silently approving the conditions of the agreement. However since the amount of sold M-LUX computers is small and each particular internet shop did not provide active actions (as well as not in every episode prices set by MOBILUX Ltd. were complied) CC has adopted a decision not to issue administrative act concerning collaboration partners of MOBILUX Ltd. (internet shops). However CC has informed the involved internet shops that for such violations as implication in agreements or concerted actions (including complying with or setting minimal or fixed resale prices that is forbidden by law) CC is entitled to adopt a decision on imposing legal obligations and fines.