The Italian Competition Authority (AGCM) announced on Wednesday (October 29th) that it has launched an investigation into the European subsidiary of Chinese drone manufacturer DJI and its Italian importers. The reason behind this investigation is the alleged pressure exerted on retailers by DJI to maintain fixed product prices and avoid competition.
According to reports from Reuters, AGCM received complaints stating that the world’s largest drone manufacturer, DJI, and its Italian importer Nital, monitored the pricing set by retailers and issued warnings to those offering prices lower than those listed on Nital’s website, threatening to disrupt the supply chain.
In a statement released on Wednesday, the Italian Competition Authority stated that DJI and Nital were accused of enforcing resale prices within their distribution network, thereby preventing any form of price competition, such as providing discounts or promotions.
This practice, known as “resale price maintenance,” is in violation of relevant EU regulations. If found guilty, companies under investigation are typically subject to fines.
In response, DJI stated on Thursday that the company is “committed to complying with strict legal and regulatory standards.”
The company further added in an email statement, “We will fully cooperate with the relevant authorities’ investigations.”
According to the Italian media outlet “Il Sole 24 Ore,” on October 23rd, regulatory officials, with the assistance of the Italian Financial Police’s Antitrust Special Division, conducted inspections at the offices of Nital and several enterprise-level drone dealers of DJI in Italy.