ROME (Reuters) -The Italian Competition Authority (AGCM) said on Wednesday it had opened an investigation into the European subsidiary of the Chinese drone maker DJI and its Italian importer over
Italy Launches Investigation into DJI for Alleged Price Fixing
Investigation Overview
ROME (Reuters) -The Italian Competition Authority (AGCM) said on Wednesday it had opened an investigation into the European subsidiary of the Chinese drone maker DJI and its Italian importer over allegations that they pressured retailers to fix the prices of their products.
Allegations Against DJI and Nital
The AGCM has received reports that DJI, the world's largest drone maker, and local importer Nital monitored the prices charged by retailers. Those who deviated from the ones on Nital's website received warnings including threats that supplies would be interrupted.
Implications of Resale Price Maintenance
"In this way, DJI and Nital allegedly enforce adherence to resale prices across their distribution network, preventing any form of price competition such as discounts or reductions for customers," the AGCM said.
Response from DJI and Nital
Such practice, known as resale price maintenance, would be a breach of European Union rules, with fines normally imposed as a punishment if allegations of wrongdoing are upheld.
There was no immediate comment from DJI. Nital could not be reached for comment.
(Writing by Keith Weir, editing by Gavin Jones)
