News, 29 April 2010
The FCA proposes that the Market Court impose an infringement fine of €4m on the Iittala Group Oy Ab for resale price maintenance (RPM) violating the Finnish Competition Act.
In 2005-2007, Iittala imposed minimum resale prices on several well-known products such as the Kivi candle holders, the Maribowl, the Moomin products, the Teema series, the Aalto glassware and the KoKo products. Iittala hence prevented any price competition between retailers.
The RPM concerned almost all Iittala retailers in Finland. The investigations of the case commenced when the retailers contacted the FCA. Iittala terminated the violation after the FCA had intervened in the matter.
In distribution agreements, RPM is considered one of the most serious competition restraints. Retailers shall have the right to set the price of their products independently and if they so wish, to compete on prices. RPM is forbidden because it is considered to push up prices for consumers.
Senior Research Officer Tarja Sinivuori-Boldt
Director Kirsi Leivo