Guitar maker Fender facing fine

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.

The Competition and Markets Authority (CMA) said between 2013 and 2018 Fender attempted to restrict online discounting for its guitars, as part of a provisional decision.

Piano maker Casio was fined £3.7 million in August for a similar practice, known as resale price maintenance, where retailers are forced to charge a minimum price, making competition and discounting impossible.

Fender now has an opportunity to appeal against the decision, before it is made final and any potential fine is imposed.

Ann Pope, CMA senior director of antitrust, said: “Shopping online can make it much easier to compare prices and hunt down bargains – this can be especially important for potentially big purchases like a guitar.”

According to the CMA, guitar sales in the UK are around £440m a year, with online sales now accounting for 40 per cent of purchases.