Electronic drum sector: anti-competitive practices 50565-5
The CMA has found anti-competitive practices in the electronic drum sector which infringe Chapter I CA98 and/or Article 101 TFEU.
Case timetable
| Date | Action |
|---|---|
| 19 April 2021 | CAT ruling rejecting an appeal on the level of the penalty |
| 22 July 2020 | Non-confidential infringement decision, and related materials, published |
| 29 June 2020 | Infringement decision issued to party and settlement announced together with wider musical instruments sector compliance communications concerning resale price maintenance |
| May 2020 | Party offered to settle investigation with CMA |
| March 2020 to summer 2020 | Receipt and consideration of representations on the statement of objections |
| 24 March 2020 | Statement of objections issued. |
| July 2019 to March 2020 | Further investigation including information gathering. CMA analysis and review. |
| July 2019 | Decision taken to proceed with the investigation. |
| April 2018 to July 2019 | Initial investigation: information gathering, including issue of formal or informal information requests to parties. CMA analysis and review of information gathered. State of play meetings with parties under investigation. |
| April 2018 | Investigation opened |
Competition Appeal Tribunal ruling
19 April 2021: The Competition Appeal Tribunal (CAT) rejected an appeal brought by Roland on the level of the fine imposed by the Competition and Markets Authority (CMA).
- Press notice: CAT increases fine after musical instrument firm breaks settlement bargain (19.4.21)
- Competition Appeal Tribunal judgment decision
Non-confidential infringement decision, and related materials
22 July 2020: The CMA has published a non-confidential version of the decision in this case, in which Roland was fined just over £4 million for breaking competition law by engaging in resale price maintenance (RPM).
- (22.7.20)
To help the musical instruments industry learn the lessons from this investigation, the CMA has published a case study on this case.
Settlement, infringement decision and follow-up compliance work
29 June 2020: The CMA issued a decision finding that Roland (U.K.) Limited (Roland UK) infringed competition law by engaging in resale price maintenance (RPM). The CMA imposed a fine of just over £4 million. As the ultimate parent company of Roland UK, Roland Corporation is jointly and severally liable for Roland UK’s fine. Under the CMA’s Leniency programme, Roland received immunity from a fine for the period 7 January 2011 to 31 December 2012 and a 20% discount on the fine for the period 1 January 2013 to 17 April 2018. The fine was reduced by a further 20% to reflect settlement. Under these procedures, a company admits acting illegally and co-operates in return for a reduced fine, which helps make the CMA’s investigation more efficient.
- Press release: Musical instrument firms to pay millions after breaking competition law (29.6.20)
To help the musical instruments industry learn the lessons from the CMA’s investigations, the CMA has published an open letter to suppliers and retailers in the musical instruments sector and case studies on our Fender and Casio investigations and issued a large number of warning letters. These letters signpost guidance for businesses on resale price maintenance and encourage musical instrument suppliers and retailers to review their business practices to ensure they are complying with competition law. Building on its extensive efforts to monitor and address suspected RPM, the CMA has also launched its own in-house price monitoring tool aimed at deterring companies from entering into agreements restricting online discounting. Find out more in our blog.
Statement of objections
24 March 2020: The CMA issued a statement of objections alleging that Roland (U.K.) Limited (Roland UK) has breached UK and/or EU competition law by restricting online discounting for electronic drum kits and related components and accessories supplied by Roland UK.
- Press release: Music firms illegally prevented discounts, CMA alleges (24.3.20)
Case information
On 17 April 2018, the CMA launched an investigation (50565-5) under Chapter I of the CA98 and Article 101 of the TFEU into suspected breaches of competition law by various parties. The investigation related to alleged anti-competitive agreements and/or concerted practices in relation to musical instruments and equipment.
Further details of the CMA’s procedures in Antitrust cases are available in our guidance.
Personal data
The CMA may collect, use and share personal data for its investigations, including investigations under the Competition Act 1998. This includes processing personal data for the purposes of the General Data Protection Regulation and the Data Protection Act 2018.
For more information about how the CMA handles personal information, please see the CMA’s Personal Information Charter.
Contacts
- Assistant Directors, Antitrust: Chris Dodds (020 3738 6717, Chris.Dodds@cma.gov.uk), Neha Dhaun-Brewer (020 3738 6615, Neha.Dhaun-Brewer@cma.gov.uk)
- Director, Antitrust: Simon Nichols (020 3738 6368, simon.nichols@cma.gov.uk)
- Senior Responsible Officer: Ann Pope (020 3738 6786, ann.pope@cma.gov.uk)
Updates to this page
Published 17 April 2018Last updated 19 April 2021 + show all updates
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Competition Tribunal Appeal judgment decision published.
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Non-confidential infringement decision and related materials published.
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Settlement, infringement decision and follow-up compliance work announced.
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Statement of Objections issued. Case timetable updated.
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Additional dates for the case timetable published.
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First published.