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Saturday, November 21, 
8:18 am

Sony upsets holiday shoppers, antitrust attorneys

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Sony_Cybershot.jpgExpecting a good deal on a Sony Inc. HDTV or digital camera on Friday? Odds are against it, and that not only has some consumers upset, but also the antitrust bar. Antitrust lawyers expressed a lot of angst the weekend over a recent announcement that Japanese electronics and media conglomerate Sony has implemented a no-discount rule to retailers selling some of Sony's top-end products, including flat-screen televisions, the Alpha digital camera family and other products.

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A senior executive told The New York Times that because of the new policy, stress levels will drop during this chaotic holiday season. "Consumers don't have to worry about whether I can get a better deal at retailer A or retailer B," he said. "Everybody gets the best deal."

In addition to angering readers who have spent the weekend dissing Sony via blogs like the Times' Bits and AOL's Engadget, antitrust lawyers have also been chewing on the idea via an American Bar Association listserve.

Antitrust law professors, private firm lawyers and even corporate lawyers who handle antitrust issues for their companies have weighed in on the matter, because the Supreme Court in June said it's no longer automatically illegal for manufacturers to force retailers to hold prices at a set point. Now, each case will be evaluated on its distinct merits, and if the justification is sufficient, the requirement could pass antitrust scrutiny.

It remains to be seen whether the "stress avoidance" notion will be sufficient. - Cecile Kohrs Lindell

See story from The New York Times' Bits blog
See story from AOL's EngadgetHD blog

Cecile Kohrs Lindell is a senior reporter in The Deal's Washington bureau.





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