Guitars: anti-competitive practices 50565-3
The CMA has found anti-competitive practices in the guitar sector which infringe Chapter I CA98 and/or Article 101 TFEU.
Case timetable
| Date | Action |
|---|---|
| 24 March 2020 | Non-confidential infringement decision published |
| 22 January 2020 | Infringement decision issued to party and settlement announced |
| December 2019 | Party offered to settle investigation with CMA |
| October to December 2019 | Receipt and consideration of representations on the statement of objections |
| 8 October 2019 | Statement of objections issued |
| May 2019 to October 2019 | Further investigation including information gathering. CMA analysis and review. |
| May 2019 | Decision taken to proceed with the investigation. |
| April 2018 to May 2019 | Initial investigation: information gathering, including issue of formal or informal information requests to parties. CMA analysis and review of information gathered. State of play meetings with parties under investigation. |
| April 2018 | Investigation opened. |
Non-confidential infringement decision
24 March 2020: The CMA has published a non-confidential version of the decision in this case, in which Fender was fined £4.5 million for breaking competition law by engaging in resale price maintenance (RPM).
- (24.3.20)
More information on RPM is available in the CMA’s advice for retailers.
Settlement and infringement decision
22 January 2020: The CMA issued a decision finding that Fender Musical Instruments Europe Limited (Fender Europe) infringed competition law by engaging in resale price maintenance (RPM). The CMA imposed a fine of around £4.5 million. As the parent company of Fender Europe for the relevant period, Fender Musical Instruments Corporation is jointly and severally liable for Fender Europe’s fine. The fine includes a 60% discount under the CMA’s leniency programme and a further 20% discount to reflect settlement. Under these procedures, a company admits acting illegally and co-operates in return for a reduced fine, which helps make the CMA’s investigation more efficient.
- Press release: Guitar maker fined £4.5m for illegally preventing price discounts (22.1.20)
The CMA has published advice to help businesses understand more about illegal RPM practices and compliance with competition law.
Statement of objections
8 October 2019: The CMA issued a statement of objections alleging that Fender Musical Instruments Europe Limited (Fender Europe) broke competition law by restricting online discounting for its guitars.
- Press release: CMA alleges guitar firm illegally prevented price discounts (8.10.19)
Penalty notice
26 March 2019: The CMA has published a notice of a penalty imposed on Fender Europe under section 40A of the CA98. The CMA imposed the penalty on 20 March 2019 because Fender Europe, without reasonable excuse, failed to comply with a requirement to produce documents imposed on it pursuant to section 27 of the CA98.
- (26.3.19)
- News story: Guitar firm fined for concealing documents during CMA inspection (26.3.19)
Case information
On 17 April 2018, the CMA launched an investigation (50565-3) under Chapter I of the CA98 and Article 101 of the TFEU into suspected breaches of competition law by various parties. The investigation related to alleged anti-competitive agreements and/or concerted practices in relation to musical instruments and equipment.
Further details of the CMA’s procedures in Antitrust cases is available in our guidance.
Personal data
The CMA may collect, use and share personal data for its investigations, including investigations under the Competition Act 1998. This includes processing personal data for the purposes of the General Data Protection Regulation and the Data Protection Act 2018.
For more information about how the CMA handles personal information, please see the CMA’s Personal Information Charter.
Contacts
Assistant Director
Chris Dodds (020 3738 6717, [email protected])
Director
Simon Nichols (020 3738 6368, [email protected])
Senior Responsible Officer
Ann Pope (020 3738 6786, [email protected])
Updates to this page
Published 17 April 2018Last updated 24 March 2020 + show all updates
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Non-confidential infringement decision published.
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Settlement and infringement decision announced.
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Statement of objections issued.
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Case timetable updated. Decision taken to proceed with the investigation.
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Penalty notice published. Update on company's failure to comply with a requirement to produce documents imposed on it pursuant to section 27 of the CA98.
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First published.