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- W2474888522 abstract "In May 2003, without admitting wrongdoing, music distributors and retailers settled with private plaintiffs and the Attorneys General of 43 States a civil suit regarding a conspiracy to inflate or support prices of prerecorded music products through an industry-wide strengthening of the music distributors Minimum Advertised Price (MAP) policies. The settlement leaves as an open question the proper economic and legal standard (rule of reason versus per se) to be adopted in such cases.MAP had both horizontal and vertical implications and may have facilitated a horizontal conspiracy between the music distributors. The MAP policies were alleged to be equivalent in effect to Retail Price Maintenance (RPM). The Federal Trade Commission (FTC) claimed that prices increased by approximately $2 per CD and that consumers paid an extra $480 million. The effectiveness of the MAP program in raising prices was due to the all-encompassing nature of the advertising restrictions, the industry-wide implementation of MAP programs, the payment and significance of the advertising subsidy, and the severe penalties imposed for a MAP violation. This paper illuminates the antitrust implications of MAP policies through consideration of related practices in the United States market for music CDs. When viewed from this vantage point, MAP appears to be as pernicious as RPM." @default.
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- W2474888522 date "2016-06-27" @default.
- W2474888522 modified "2023-09-23" @default.
- W2474888522 title "The Antitrust Implications of Minimum Advertised Pricing: The Case of the U.S. Music Industry" @default.
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- W2474888522 doi "https://doi.org/10.16997/eslj.113" @default.
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