Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Distributor warned about anti-competitive conduct

11 September 2006/no 038

Distributor warned about anti-competitive conduct

The Commerce Commission has warned Digitalblue Ltd that it risked breaching the Commerce Act when it told Dick Smith Electronics not to advertise an iPod accessory below a certain price.

In November 2005, a Digitalblue employee sent an email to an account manager at Dick Smith Electronics saying that the IM7 iPod accessory should not be advertised for sale at less than 95% of Digitalblue’s suggested retail price. The email said that, if Dick Smith Electronics advertised the product at more than 5% discount, Digitalblue would stop supplying it to them.

After receiving a complaint from Dick Smith Electronics, the Commission investigated and concluded that the email placed Digitalblue at risk of contravening, or attempting to contravene, section 37(3)(b) of the Commerce Act.

Section 37(3)(b) prohibits a supplier from inducing or attempting to induce a reseller not to sell goods supplied by the supplier for less than a price specified by the supplier.

Commerce Commission General Manager Geoff Thorn said the warning was a serious matter for the company.

“Digitalblue should consider very carefully the implications of any future communications with retailers regarding retail prices for goods. This kind of communication must not occur again.”

The Commission’s warning is not a ruling of law as only the Courts may determine whether conduct is in breach of the Commerce Act.


© Scoop Media

Business Headlines | Sci-Tech Headlines


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>