Asustek Computer Inc (華碩) yesterday pledged to cooperate with the European Commission’s latest probe into allegations that the company was involved in anti-competitive pricing practices in European online sales.
“Asustek always values the importance of abiding by local laws. The company will cooperate with the authorities once the investigation begins,” Asustek said in a filing with the Taiwan Stock Exchange.
The company’s filing came after the commission on Thursday initiated investigations into 15 companies — including video game firms, electronics manufacturers and tour operators — to see if they have breached EU rules by restricting online retailers’ ability to set product prices, thereby preventing consumers from buying at the lowest prices.
“The effect of these suspected price restrictions may be aggravated due to the use by many online retailers of pricing software that automatically adapts retail prices to those of leading competitors,” the commission said in the statement.
The commission is investigating whether Asustek, D+M, Royal Philips NV and Pioneer Corp have violated EU competition rules for their consumer electronics products, such as notebook computers, household appliances and hi-fi products, the statement said.
The EU alleged that four firms illegally restrict online platforms such as Amazon.com Inc from setting their own prices.
It is investigating video game developers such as Japan’s Namco Ltd and Capcom Co, as well as looking into reports by consumers that several European tour operators have colluded with Spain’s mega-hotel chain Melia Hotels International to set prices based on a customer’s location.
“E-commerce should give consumers a wider choice of goods and services, as well as the opportunity to make purchases across borders… We suspect companies are trying to deny these benefits for consumers,” European Commissioner for Competition Margrethe Vestager said in a news release.
“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,” she said.
Companies could face fines of up to 10 percent of their global revenue if they are found guilty of breaking EU regulations, the commission said.
This translates into a fine of up to NT$46.69 billion (US$1.5 billion) for Asustek based on its revenue of NT$466.99 billion last year.
Asustek spokesman Nick Wu (吳長榮) said it is hard to evaluate the potential impact of the investigations at the moment, given that Asustek has limited information about how the probe will be conducted.
The European market is Asustek’s second-largest revenue contributor. Sales from the region accounted for 35 percent of its revenue, less than Asia’s 44 percent but more than the US’ 21 percent, company data showed.
Asustek shipped 2.3 million PCs to Europe, the Middle East and Africa last quarter, securing third place in the market with a 10.5 percent share, according to Gartner Inc data released on Tuesday.
The company’s PCs contributed 65 percent to its revenue in the third quarter of last year, contributing to a total revenue of NT$117.8 billion, data showed.
Asustek is scheduled to host an investor conference and release its earnings results for last quarter on Feb. 15.
Its net income totaled NT$14.26 billion in the first nine months of last year, up 13.62 percent year-on-year, according to its filing with the Taiwan Stock Exchange.
Additional reporting by CNA and AFP
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