News — Price fixing

Transfer pricing

June 16, 2014 • Amazon • Apple • Google • Price fixing • Starbucks • Transfer pricing

Transfer pricing is a method of pricing goods and services transferred within a multinational company in order to reduce tax burdens and maximise profits for the whole enterprise. It is one of the reasons why globalisation has increased and why operating in more than one territory can be beneficial for firms looking to minimise their overall tax liability. The purpose of transfer pricing is to push profits into territories where either the tax rates are more favourable, or where more loopholes exist to be exploited.

Apple Price Fixing

June 2, 2013 • Apple • Price fixing

Apple went on trial this week (02/06/2013) to face charges brought by the US department of justice (DOJ) that, in 2009, it knowingly conspired to fix the prices of eBooks in the US. Last year Apple and five publishers (Macmillan, Penguin, Hachette, Simon & Schuster and the News Corp owned HarperCollins) were brought to book over alleged price-fixing, and while the five publishers have settled, Apple continues to dispute the price-fixing claims. The government is seeking to stop further collusion rather than impose fines for alleged past illegal activities. At the core of the price-fixing is the alleged forcing of...