$47 million fined; Samsung for price rigging in Netherlands
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Samsung (KS:005930) has been penalized 40 million euros ($46.9 million) in the Netherlands for predatory pricing, according to the Dutch competition watchdog ACM. Samsung allegedly drove up the price of its televisions in the Netherlands for years by asking retailers to boost their pricing if they were selling them below Samsung’s recommended market rate, according to the market regulator.
According to the ACM, this approach harmed competition between seven of the country’s largest online electronics businesses since Samsung made it known to all involved retailers that their competitors would adopt its pricing strategy as well. According to papers retrieved by the commission, Samsung reportedly reached out to retailers whenever their opponents complained about TVs being sold too cheaply.
“Samsung’s advice was not individual and not without consequences,” the watchdog said. “It’s behavior distorted competition and raised prices for consumers.” Samsung has announced that it will appeal the charge, claiming that it has never coerced merchants to follow its pricing guidance and that stores have always been allowed to choose their own strategy.
Samsung, on the other hand, should have recognized that its efforts to influence prices went beyond usual counselling and were actually a means to structurally dictate the market prices of its televisions, according to the regulator.