RUSSIAN AFFILIATED COMPANY OF LG IS FINED FOR COORDINATING PRICES FOR SMARTPHONES

“The sum is determined in view of the mitigating circumstances and a single aggravating one”, commented Stats-Secretary, Deputy Head of FAS Andrey Tsarikovskiy

“LG Electronics RUS” Ltd. is fined 2,500,000 RUB. The circumstances mitigating administrative liability were voluntary termination of unlawful conduct prior to opening the antimonopoly case and assisting FAS in the investigation.  The aggravating circumstance was the duration of the violation – it lasted more than a year.

Earlier FAS Commission made a decision that “LG Electronics RUS” Ltd. violated the antimonopoly law: the company coordinated economic operations of resellers of LG, that resulted in fixing and maintaining prices for smartphones (Part 5 Article 11 of the Federal Law “On Protection of Competition”).

The Russian “daughter of “LG” controlled whether resellers observed the recommended retail prices. It included, in particular, regular collection of price data applying a special price algorithm and resellers giving information to workers of “LG Electronics RUS” Ltd. about their competitors who failed to observe the recommended retail prices. Some resellers also used different price algorithms.