Sony ... More Scandal

[GhostShip]

Seems that along with passing out a trojan on their CD,s they have been forcing internet retailers to pay more for their goods and keep the price inflated.

http://news.scotsman.com/uk.cfm?id=2241992005

THE electrical giant Sony has been accused of price-fixing in an attempt to curb internet bargains and send online prices soaring, it emerged yesterday.
The firm is among up to five leading manufacturers which demand higher prices from internet retailers than they do from high street stores.


The "dual pricing" move is being challenged by online discounters who have made a joint complaint to the Office of Fair Trading. If their action fails, dozens of other big-name makers of hi-fis, televisions, cameras and other electrical goods could adopt the pricing strategy.

Manufacturers have been put under enormous pressure by "bricks and mortar" store chains such as Dixons to hike up wholesale prices to online retailers. They are angry with websites undercutting the prices charged in high street shops.

Websites have much lower overheads so they can cut the price but still maintain similar profit margins. Online prices can be as much as 25 per cent lower than those in shops. A 42 inch plasma television retailing at £2,200 in the high street can be bought for £1,600 online.

A spokeswoman for the OFT yesterday confirmed it was "investigating a complaint" but refused to divulge any information about the parties involved. However, The Scotsman understands Sony, Panasonic, Sharp, Phillips and Hitachi are among the brands named.

It seems they all have their hands in the till  :shock:
This proves the old case for not allowing a monopoly to exist or Cartels will attempt to exploit the market, just like the RIAA/MPAA members currently do, at the consumers expense.

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What we need is one of the big manufacturers to step forward and offer a fair and honest pricing policy for their products, i have in the past purchased Sony products, i wont again, apart from anything else, i think they are overpriced compared to other brands.
(Although having recently seen the new portable playstation, i was very tempted by the Darkside   )

As for companies such as Dixons, you didnt hear them moaning when chains such as theirs put the "little" family run electrical stores outta business by undercutting them, yet when someone uses the internet to undercut their prices they start jumping up and down, i hate hypocrisy. I will now more than ever pop into my local dixons, check out the product i wish to buy and then go home and order it online at a nice discount. Anyway, i dont see Dixons problem, they have their own online business, and if they fail to match other websites prices thats their own issue, not that of the customer or the manufacturer.

[GhostShip]

Its the usual case of kill the competition so you can seize the entire market and its not in the consumers interest for that to happen as you point out.

I noticed the similar effect large retail food outlets caused with the same idea of pricing items so cheap that the smaller competition would collapse and then hike the prices up when there was no competition, nothings changed in the eyes of big business.

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nothings changed in the eyes of big business.

Only this time the boot is on the other foot, companies like Dixons are feeling the pinch from smaller online and cheaper companies, i hope it teaches them a lesson, a taste of their own medicine is often a good thing.