Cartel formed by online retailers selling Bieber and 1D posters on Amazon

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Sharecast News | 21 Jul, 2016

Updated : 16:55

The competition and markets authority (CMA) has found Trod and GB Eye have been colluding on prices for their sport and entertainment merchandise sold on Amazon.

The two companies agreed against undercutting each other’s prices for posters and frames by using an automated repricing software from 24 March 2011 to 1 July 2015.

“Online pricing tools, such as automated repricing software, can also help sellers compete better, for the benefit of consumers. In this case, however, the parties used repricing software to implement an illegal agreement to deny consumers these benefits,” said senior director of CMA’s cartels and criminal group Stephen Blake

Birmingham-based Trod and Sheffield-based GB Eye not only sold posters and frames but badges, stickers and mugs adorned with images of celebrities like boy band One Direction and Justin Bieber.

GB Eye reported the cartel and so will not receive a fine, according CMA’s leniency policy. Trod, on the other hand, will be fined £163,371, including a 20% discount for cooperating in the investigation. Amazon was not involved and has not been investigated by the CMA.

“The CMA is committed to tackling such anti-competitive behaviour, which jeopardises online markets and consumer trust in e-commerce,” said Blake.

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