Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors.The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices.This is a classic example of:
A)price skimming.
B)market penetration.
C)price bundling.
D)price fixing.
E)transfer pricing.

Question

Quizplus · Accepted Answer

This scenario describes price fixing, where Nintendo and its distributors agreed on maintaining high prices in certain countries by preventing sales from lower-priced markets to higher-priced ones, violating competition laws.

Nintendo Was Fined Nearly $150 Million After It Was Determined