We store cookies, you can get more info from our privacy policy.

Nintendo Responds to European Commission Fine

by Karlie Yeung - October 30, 2002, 12:36 pm EST
Discuss in talkback! Source: Nintendo Press Release

Nintendo has been fined for its practices in Europe during the 1990s, and the total sum is surprisingly large.

Discuss it in Talkback!

The European Commission has fined Nintendo a total of €167.8 ($165.1) million for breaking anti-trust laws and keeping prices artificially high in certain regions of Europe during 1991-1998. €149 ($146.6) million of the fine is directed at Nintendo with the rest of the total charged to seven European distributors of Nintendo products. It is thought that prices have varied by up to 65% in different European countries, and aggressive attempts to prevent cross territory shipments. Nintendo will be appealing against the decision.

NINTENDO REPLIES FOLLOWING EUROPEAN COMMISSION DECISION

30th October 2002 - The European Commission has today levied a fine on Nintendo Co., Ltd. of Japan and Nintendo of Europe.

The Commission has found that certain of Nintendo's distribution practices in Europe in the period up to 1998 did not comply with EU competition rules. In particular it has found that Nintendo restricted parallel trade within the EU.

The decision relates to an investigation process that ended more than two years ago. Since then, the decision has been delayed by internal Commission procedures.

Nintendo co-operated fully with the Commission's investigation and, following an internal review launched in late 1997, voluntarily provided much of the information relied on by the Commission in taking its decision.

Nintendo accepts the finding that, up to 1998, its distribution practices did not comply with EU competition rules. Nintendo has rectified the relevant aspects of its distribution in Europe and has instigated a thorough and far-reaching compliance programme that enables the free flow of product across Europe.

Nintendo has accounted for the decision in its previous planning, so that there will be no impact on its business and financial performance this financial year. However in view of the size of the fine, which Nintendo finds surprising Nintendo will lodge an appeal.

Got a news tip? Send it in!
Advertisement
Advertisement