RUSSIAN SUBSIDIARY OF LG UNLAWFULLY COORDINATED PRICES FOR SMARTPHONES
The violation led to fixing and maintaining prices for smartphones
On 26 February 2018, FAS found that “LG Electronics RUS” violated Part 5 Article 11 of the Federal Law “On Protection of Competition” (unlawful coordination of economic activity).
The Commission established that coordination included: fixing the recommended retail prices published on the Russian LG web-site and informing resellers about it; controlling reseller prices; forcing them to observe the recommended retail prices; applying sanctions when the recommended prices were not observed (terminating shipping).
In the course of the investigation it was established that to monitor retail prices and control them, “LG Electronics RUS” used special algorithm software.
Coordination of economic activity of LG smartphone resellers led to fixing and maintaining prices for some smartphones *.
“LG Electronics RUS” will be fined upon investigating an administrative case.
* Models: L90 – D410, G4s – H736, G3s – D724, Magna – H502, H502F, G4 – H818, G4c – H522y, Spirit – H422, Nexus 5 – D821, G3 – D855, K5 – X220DS, K7 – X210DS, K8 – K350E, Class – H650E, K10 LTE – K430ds, X Power – K220DS, G5 SE – H845.