European Commission Fines Nintendo
Wed Oct 30,10:21 AM ET

BRUSSELS, Belgium (AP) - The European Commission fined Japanese computer game maker Nintendo and seven of its European distributors a combined $165 million Wednesday for violating antitrust rules on pricing in the 1990s.

Nintendo Co. Ltd. and seven of its European distributors were fined a total of 167.8 million euros for keeping prices in some European markets high by illegally collaborating to limit cross-border sales.

The fine on Nintendo was 149 million euros ($146 million) and was fourth largest ever handed down by the European Union's antitrust authorities on an individual company for a single offense.

In a statement, the Commission said the fine reflected Nintendo's size in the market and its role as the "driving force behind the illicit behavior."

In Japan, a company spokesman said Nintendo did not contest the charges, but intended to appeal against the size of its fine claiming the case against it was based on information voluntarily submitted by the company.

The Commission said the company prevented distributors selling its goods from EU countries such Britain where prices were cheaper to those like Germany and the Netherlands where they were up to 65 percent more expensive.

"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," said EU competition commissioner Mario Monti.

"We will not tolerate collusive behavior intended to keep prices artificially high."

The Commission said Nintendo and the distributors "intensively collaborated" to uncover traders who made price-cutting cross-border sales. Such traders were "punished by being given smaller shipments or by being boycotted altogether," the Commission said.

Other companies fined were John Menzies PLC, Nintendo's official distributor in Britain; Concentra-Produtos para criancas S.A. of Portugal; Linea GIG SpA in Italy; Bergsala AB from Sweden; the Greek unit of Japan's Itochu Corp.; Nortec AE of Greece, and the Belgian unit of Germany's CD-Contact Data GmbH.

The collusion continued from 1991 to 1998, the Commission said, even after Nintendo knew it was under investigation.

Source (http://story.news.yahoo.com/news?tmpl=story2&cid=509&u=/ap/20021030/ap_on_bi_ge/europe_nintendo_1&printer=1)

I just posted that you hater and you closed it:mad:
Ya they seem to have gotten the shaft. But if you do the crime then you got to do the time. I guess.

The EC has no authority. Just blow it off...

hmmm. I suppose a company is entitled to try and make the most money that it can, and its not really up to any government of judicial body to say who a company can and cannot sell its product to, but why didn't Nintendo just sell to everybody and make even more money?

The issue is...the EU can then say 'no more Nintendo Imports allow.'

(if they were so inclined)

Originally posted by Manu
The issue is...the EU can then say 'no more Nintendo Imports allow.'

(if they were so inclined)


But wouldn't it hurt their own economy to the nth. degree by doing so(if they were to do so)? I kinda seems wrong but that's business. If you don't want to spend that much money then don't. Don't go sue someone b/c they are charging you too much. I think that it's absurd to think you can sue someone for that reason. Only a fool would discontinue sales of one of the biggest gaming consoles.http://www.tekkenzaibatsu.com/forums/images/smilies/yawn.gif

Strangely enough, console sales aren't the main driving force of the European economy. :|

Decisions by the EU are like UN resolutions.


Noisy, pointless, and ineffective.

Unless, that is, you want to sell things in the E.U.

:|

They get kind of important then.

Originally posted by TheFrog
Decisions by the EU are like UN resolutions.

Noisy, pointless, and ineffective.
If they carry out their fine of $165 million, that might be a little effective.

Good point, johhnyoftheevildead.

Originally posted by jonnyofthedead
Strangely enough, console sales aren't the main driving force of the European economy. :|


I'm guessin oil right. Ya I figured that. I don't know any country that depends on selling games to bring home the dough. But why would they sue unless those consoles were selling?
My arguement might be flawed but I still think that sueing a company for making a profit is jacked up "johnnyofthegreatfuldead".