Asus under investigation in Europe for unfair pricing practices

Asus logo Shi Chongxin

The European Commission has launched an investigation into three separate cases of anti-competitive practices by e-commerce traders, including Asus.

The European Commission isn’t able to share much information at this stage however Commissioner Margrethe Vestager, in charge of competition policy said, “The cases concern the consumer electronics, video games and hotel accommodation sectors. More specifically, we are looking into whether these companies are breaking EU competition rules by unfairly restricting retail prices or by excluding customers from certain offers because of their nationality or location.”

The newly launched investigation aims to tackle issues like price restriction and discrimination on the basis of location within the European Union. Preliminary reports indicate that such unfair practices are in fact rampant throughout the EU.

Effect of Unfair Pricing

Asus and Philips are among the electronics manufacturers that are being investigated. Many online retailers allegedly use pricing software that automatically adapts retail prices to contend with leading local competitors. Implementing such pricing software throughout the EU effectively fragments the economy and initiates a vicious cycle of unfair practices.

The European Commission aims to carry out an independent in-depth investigation which will help reduce the impact of price fixing on electronics products. As far as we can tell Asus’s plans to double its smartphone sales in 2017 may have taken a hard hit.

Do you think this investigation will be fruitful? Let us know in the comments section.

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