Brussels, 30/10/2002 (Agence Europe) - The Japanese manufacturer of video games, Nintendo and seven of its official distributors in Europe have had a substantial fine inflicted on them, for a total of 167.8 million euro (149 million of which or Nintendo alone) on the part of the European Commission, for having impeded the marketing of low-price products. This fine is the fifth largest the Commission has ever inflicted in an anti-cartel decision. The procedure was initiated in April 2000 against Nintendo and seven of its distributors: Nintendo of Europe GmbH (jointly responsible with Nintendo Corp.), John Menzies plc (UK), Concentra-Produtos para criancas SA (Portugal), Linea GIC Spa (Italy), Bersala AB (Sweden), the Greek branch of the Japanese firm Itochu Corp Nortec AE and the Belgian branch of the German firm CD-Contact Data GmbH.
In its in-depth investigation, the Commission was able to gather proof that Nintendo and its distributors had colluded to maintain artificially high price differences in the EU between January 1991 and 1998. The most flagrant price differences were recorded in Germany and in the Netherlands in 1996 where prices were as much as 65% higher for certain products than in the United Kingdom, and in Spain in 1997, with price differences of 67%, still compared with the British market. the Commission accuses Nintendo's distributors of having agreed to prevent parallel trade from their territories (i.e., exports from one country to another via unofficial distribution channels), through a total boycott or a reduction in their supplies, which is a serious infringement of Article 81 of the EC Treaty (cartels). "When there are such high price differences, it is legitimate for companies to see an opportunity to trade in or import products from third countries where they are cheaper, whereas Nintendo obstructed this parallel trade", stressed the spokesperson for commerce, Amelia Torres. Nintendo, which instigated the cartel, like John Menzies (8.64 million euro fine), continued the practices even after the opening of the investigation, which constitutes aggravating circumstances. However, the Commission took account of the fact that the company and its distributor collaborated in the investigation, and looked favourably upon Nintendo's decision to offer large financial compensations to third parties having suffered injury. Commissioner Monti commented on the decision as follows: "Every year, millions of European families spend large amounts of money on video games. They have the right to buy the games and consoles at the lowest price the market can possibly offer and we will not tolerate collusive behaviour intended to keep prices artificially high".
Reacting to the decision, Nintendo acknowledges that its practices were, until 1998, an infringement to the European rules of competition but disputes the size of the fine and will appeal on that score.