The Commerce Commission is looking into a possible case of anti-competitive behaviour involving a major retailer and an international electronic goods maker.
The competition watchdog confirmed it had been investigating potential resale price maintenance in the consumer electronics sector but did not name the parties involved. Photo: RNZ / Alexander Robertson
RNZ Business has learned that an investigation is underway into dealings between Harvey Norman and LG Electronics.
The competition watchdog confirmed it had been investigating potential resale price maintenance in the consumer electronics sector.
It declined further comment and would not confirm the names of the parties involved.
RNZ Business has been told they are Harvey Norman and LG Electronics.
A spokesperson for LG Electronics denied it engaged in improper market practices.
"LG Electronics has cooperated fully with the Commerce Commission during its inquires and the investigation has now concluded. As far as LG is concerned, the company has not engaged in any improper market practices."
RNZ Business also understands the commission has looked at attempts to conceal the activity.
Resale price maintenance is when a supplier of goods enforces, or tries to enforce a minimum retail price, which is prohibited under the Commerce Act.
Individuals convicted of breaches face fines of up to $500,000, and companies up to $10 million or any gains made from such action.
Harvey Norman has been approached for comment.
