5 ms·
From what I understand, MSRP is the suggested retail price. Is EVGA contractually obligated to list at that price? And if so, how does that not violate antitrus
by thayne 4y ago
From what I understand, MSRP is the suggested retail price. Is EVGA contractually obligated to list at that price? And if so, how does that not violate antitrust laws?
- henryfjordan 4y agoIn the US, antitrust doctrine is largely based around preventing dominant market players from causing direct harm to the consumer and does not care much about health of the markets. It is hard to argue that NVIDIA saying "use this price that you think is too low" to EVGA would constitute an antitrust violation when that means lower prices for consumers.
- thayne 4y agoWell, EVGA isn't just reselling Nvidia's product. They are building a new product (a vidio card) that uses Nvidia's product (the GPU itself). So by setting a price ceiling, they prevent card makers for making higher end cards with more features and/or higher quality. And I would argue that preventing the existence of a product that consumers might want hurts some consumers at least.
- chii 4y ago> And I would argue that preventing the existence of a product that consumers might want hurts some consumers at least. unfortunately, a product that doesn't exist isn't really a harm, it's hypothetical harm at best, which would be really difficult to argue as monopolistic. I actually think this business agreement ending is a good thing - it gives AMD and other card manufacturers a way to get in, and compete with nvidia. In the short term it might hurt, but long term is better.
- indymike 4y agoEVGA is not obligated to allow the retailer to sell using EVGA's trademark, or give access to reseller pricing if the retailer does not follow their terms and conditions on advertised price. The retailer actually can sell at lower prices, so long as it is not advertised. This is why you see weird "log in to see price" online or "call for pricing" in print.
- secabeen 4y agoWhile trademarks and pricing is an element, the main lever the manufacturer has is mainly just future chip supplies. If you get one thousand 3080 chips from NVIDIA and make them into video cards that you sell well above the price NVIDIA wants, they will simply just not renew your contract when it expires. No chips, no cards.
- indymike 4y agoThey would be breaking us law and ftc regulations if selling price and not advertised price were used that way.
- andrewf 4y agoEVGA is not obligated to allow the retailer to sell using EVGA's trademark I'm not an expert, but I imagine nominative use would be ok? i.e. you'd be able to run an ad saying "EVGA RTX-3080-DSFHDSFG - $999" or showing a picture of the box they sell it in (including the EVGA logo on that box).
- indymike 4y agoNo, not ok. That’s why you see login for price and call for price on some products.
- numpad0 4y agoNVIDIA directly competes with them. I don’t know how it’s legal, possibly not. It’s hard to sell an “EVGA NVIDIA 3040(16GB)” at $1999 against an “NVIDIA NVIDIA 3040(16GB)” at $999. Exaggerated but basically that.