Comments on: States Challenge Resale Price Maintenance Agreement; Settlement http://www.antitrustreview.com/archives/1317 News and commentary about antitrust, economics, technology, policy Wed, 07 Jan 2009 03:28:03 +0000 http://wordpress.org/?v=2.2 By: David Fischer http://www.antitrustreview.com/archives/1317#comment-13891 David Fischer Wed, 26 Mar 2008 22:05:12 +0000 http://www.antitrustreview.com/archives/1317#comment-13891 <p>This case was discussed quite a bit today during the Spring Meeting panel on Leegin. The complaint was generally described as what it would look like if Leegin never happened. My favorite parts of the complaint include:</p> <ul> <li><p>"Aeron chairs are very popular and sought-after."</p></li> <li><p>The complaint only alleged higher prices for the chairs. No discussion about output.</p></li> <li><p>No relevant product market definition (nor geographic market definition).</p></li> <li><p>"Some retailers who wanted to sell Aerons for less by advertising a lower price attempted to do so. When a retailer advertised below HMH's minimum price, HMH terminated the retailer's access to the Aeron chair for one year." [Sounds like a MAP case.]</p></li> <li><p>"HMH implemented its SRP policy to improve retail margins and by most accounts, the program did so. The few retailers who chose not to follow the SRP were either terminated or lost access to the Aeron they advertised at less than the SRP . The vast majority of retailers raised and maintained their retail price at the SRP level." [Again, sounds like MAP and/or Colgate.]</p></li> </ul> This case was discussed quite a bit today during the Spring Meeting panel on Leegin. The complaint was generally described as what it would look like if Leegin never happened. My favorite parts of the complaint include:

  • “Aeron chairs are very popular and sought-after.”

  • The complaint only alleged higher prices for the chairs. No discussion about output.

  • No relevant product market definition (nor geographic market definition).

  • “Some retailers who wanted to sell Aerons for less by advertising a lower price attempted to do so. When a retailer advertised below HMH’s minimum price, HMH terminated the retailer’s access to the Aeron chair for one year.” [Sounds like a MAP case.]

  • “HMH implemented its SRP policy to improve retail margins and by most accounts, the program did so. The few retailers who chose not to follow the SRP were either terminated or lost access to the Aeron they advertised at less than the SRP . The vast majority of retailers raised and maintained their retail price at the SRP level.” [Again, sounds like MAP and/or Colgate.]

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