FUJIFILM'S REBUTTAL REGARDING
VERTICAL AND HORIZONTAL PRICE FIXING



EXECUTIVE SUMMARY


Kodak alleges that -- at least outside of major cities like Tokyo and Osaka -- price competition in Japan has been systematically suppressed by a massive price fixing conspiracy masterminded by Fujifilm. According to Kodak, this pervasive price fixing prevents Kodak from underselling Fujifilm at the retail level and thereby picking up market share. Kodak's main "evidence" of this conspiracy consists of dozens of trade press articles from the past 25 years that purportedly document price fixing by Fujifilm and its wholesalers and retailers.

In this submission, Fujifilm blows Kodak's allegations out of the water. The key facts presented here are as follows:

In sum, this submission shows that Kodak's charges of price fixing are both irrelevant and untrue. They are irrelevant because -- even if true -- Kodak could not have been harmed by inflated price levels, for the simple reason that it has not been trying to gain market share in Japan by underselling Fujifilm. They are untrue because the verifiable facts about pricing patterns in the Japanese market show that price competition is alive and well, and thus that there is no widespread price collusion. Kodak's "evidence" to the contrary -- its massive "Evidentiary Appendix" -- may make an excellent doorstop, but it is completely worthless as documentation of anticompetitive conduct.


TABLE OF CONTENTS

DISCUSSION

A. Kodak's Theory Of How Price Collusion Injures Its Exports To Japan Is Demonstrably Untrue

  1. Kodak's own manufacturer's suggested retail prices for its film show that it has not been trying to undersell Fujifilm

  2. Kodak's pricing shows that it has not taken advantage of the devaluation in the dollar versus the yen

  3. Kodak officials have publicly stated that Kodak does not intend to seek market share through price cutting

  4. Kodak presents no evidence of retailer refusal to pass through Kodak price cuts

B. Pricing Patterns In Japan Disprove Kodak's Claim Of Widespread Price Collusion
  1. Price competition exists throughout Japan, and has been intensifying over time

  2. Fuji brand film is discounted all over Japan

  3. Kodak film is discounted all over Japan

C. Kodak's "Evidence" Of Vertical And Horizontal Price Collusion Cannot Withstand Critical Scrutiny
  1. Kodak has provided no evidence that Fujifilm has engaged in resale price maintenance

  2. Kodak provides no evidence of horizontal price fixing
CONCLUSION


*Please click title to download document.

Portable Document Format (full text)*** (156 KB)

Portable Document Format (figure)*** (177 KB)



*** Note:Please use Free Acrobat Reader Software through www.adobe.com when you read.



[Footer]

[Film Case Homepage]