COMPETITION WATCHDOG RAPS GUITAR FIRM FENDER

FENDER, the world-famous guitar maker, has been illegally restricting discounting for its guitars online and could face a heavy fine, according to the UK competition watchdog.

In a provisional decision the Competition and Markets Authority said that between 2013 and 2018 Fender attempted to limit online discounts.

Piano maker Casio was fined £3.7m in August for a similar practice, known as resale price maintenance (RPM), where retailers are forced to charge a minimum price.

Fender, whose instruments have been used by stars such as Jimi Hendrix ( pictured), has an opportunity to appeal against the decision, before it is made final and any fine is imposed.

Ann Pope, at the CMA, said: ‘We take RPM very seriously. It removes one benefit of the internet of making it easier to quickly find a better price by shopping around. It leads to higher prices for customers.’

According to the CMA, UK guitar sales are around £440m a year, with online sales of instruments accounting for 40pc of all purchases. Fender has been approached for comment.