Competition Commission fines piano dealer
The Swiss Competition Commission (COMCO) has sanctioned Musik Hug and AKHZ Management AG (formerly Krompholz AG) with fines totaling 528,000 Swiss francs. The two dealers in grand and upright pianos violated the Cartel Act with horizontal price agreements.
In its decision, COMCO found that Musik Hug and Krompholz agreed list prices and discounts between themselves for grand and upright pianos made by Steinway & Sons and Grotrian-Steinweg. It is true that La Bottega del Pianoforte SA also unlawfully coordinated its prices with this agreement. However, as it was the first company to report its breach of antitrust law, the sanction was waived.
For their part, the manufacturers Steinway & Sons and Grotrian-Steinweg did not specify any minimum or fixed prices, but supported the dealers' agreements by printing the agreed list prices. These two companies have undertaken in mutual agreements to refrain from such behavior in the future.
The investigation was opened on November 28, 2012 following an inquiry by the Canton of Zurich's Building Department. The possible violations of antitrust law in connection with the procurement procedure for grand and upright pianos for the Zurich University of the Arts in the former Toni dairy were not confirmed. The investigation did, however, bring to light the above-mentioned comprehensive agreement on list prices and discounts between the aforementioned dealers.
COMCO's decision can be appealed to the Federal Administrative Court.
