Archived posting to the Leica Users Group, 1999/12/29
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]In a message dated 12/29/99 7:09:37 PM, rjr@usip.com writes: That's an interesting insight. When I had Antitrust at Michigan with Tom Kauper, he never told us about the Department's stand on RPM (he probably should have, since he was in it up until the 80s. I think there's definitely a case to be made for why you don't want coercive tactics being used to stifle competition at the consumer end. I don't see why Leica can't set its net price to dealers, but I have a real problem with their fixing prices past that point. From an economic standpoint it stifles competition. From a moral standpoint - what do they care? They have already made their buck when the item lands at the dealer. Sub-Zero does even more egregious things with their built-in refrigerators. BTW: the same thing is going on with the Hexar RF. I found out that no authorized Konica dealer can advertise the package for less than $1999, which makes me wonder if Camera World is gray at $1599. Dante << Gaifana wrote: "Leica does fix their prices within a very narrow range. Smacks of illegal resale price maintenance to me, but no one seems to care - or maybe the Antitrust Division has bigger fish to fry (Microsoft?)." The Antitrust Division of the US Department of Justice does not generally bring vertical resale price maintenance suits. They have been openly hostile to the economic theory that underlies making resale price maintenance illegal. The Federal Trade Commission has been a little more inclined to be involved in such areas, but not significantly so. Leica is free to announce a resale price for the product, and then refuse to deal with any dealer who does not follow the price list. They cannot, however, coerce the dealer into charging the price. It is sort of one chance and you are out. It is very expensive to be a Leica dealer. Imagine the investment in inventory you must make, and sometimes exceptionally long time it takes to sell some items (note the presence of 10 year old "unsold" lenses in original boxes.) Further, your sales people must be trained to demonstrate the cameras and their features. That all costs lots of money. If you are going to have to discount on top of that, well you get the picture. Robert Rose Trial Attorney, Antitrust Division of the US Department of Justice 1975-1980 </XMP> - ----------------------- Headers -------------------------------- Return-Path: <rjr@usip.com> Received: from rly-yc05.mx.aol.com (rly-yc05.mail.aol.com [172.18.149.37]) by air-yc05.mail.aol.com (v67.7) with ESMTP; Wed, 29 Dec 1999 19:09:36 -0500 Received: from smtp.usip.com (sheldonmak.net [206.111.108.31]) by rly-yc05.mx.aol.com (v67.7) with ESMTP; Wed, 29 Dec 1999 19:09:27 -0500 Received: from SM-Message_Server by smtp.usip.com with Novell_GroupWise; Wed, 29 Dec 1999 16:03:53 -0800 Message-Id: <s86a30e9.094@smtp.usip.com> X-Mailer: Novell GroupWise 5.5.2 Date: Wed, 29 Dec 1999 16:03:22 -0800 From: "Robert Rose" <rjr@usip.com> To: <leica-users@mejac.palo-alto.ca.us> Cc: <Gaifana@aol.com> Subject: Leica prices = resale price maintenance Mime-Version: 1.0 Content-Type: text/plain; charset=US-ASCII Content-Transfer-Encoding: quoted-printable Content-Disposition: inline >>