EC ends probe of CD pricing policies

Commission finds most problems fixed

NEW YORK — The European Commission has halted its 8-month-old probe of the big five major record labels on allegations of price fixing on compact discs sold within the European Union.

Investigation, which began in January, mirrored a similar effort by the U.S. Federal Trade Commission in May 2000 concerning the industry’s minimum advertised pricing (MAP) policy, through which retailers received advertising support in return for making sure that prices stayed above a predetermined floor.

The FTC claimed that consumers were overcharged by $480 million under MAP policies, which have since been revoked. Probe sparked a civil action by 28 state attorneys general, which is still ongoing.

In its investigation, the EC found that three of the big five diskeries previously had MAP-like policies in force with German retailers, but had subsequently ended the practice, and that one major had potentially problematic pricing policy in Italy.

Without identifying the labels in question, the EC said local competition authorities in those countries should address the problem.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Marketplace

    Leave a Reply

    No Comments

    Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

    Fill in your details below or click an icon to log in:

    WordPress.com Logo

    You are commenting using your WordPress.com account. Log Out / Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out / Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out / Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out / Change )

    Connecting to %s

    More Music News from Variety

    Loading