Fender Hits Bum Note With Antitrust Watchdog On Prices

Law360, London (October 8, 2019, 12:36 PM BST) -- Guitar maker Fender breached competition law by preventing online retailers in the U.K. from dropping the prices of its instruments, Britain’s antitrust watchdog said Tuesday. 

The Competition and Markets Authority said it found that Fender Musical Instruments Europe Ltd. refused to allow online retailers to set their own prices for its instruments between 2013 and 2018. The guitar giant did so by insisting on a minimum price tag, which retailers could not undercut to market the products, preventing them from offering discounts to customers.

This practice is known as resale price maintenance, or RPM, and is illegal.

“We take allegations of...

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