EE Group, a leading drone supplier, has recently faced scrutiny for engaging in resale price maintenance, a practice deemed illegal under Australia's competition law. The company admitted to directing resellers to adhere to a specified price range for DJI drone products, effectively preventing them from offering competitive prices to consumers.
Between April 2024 and June 2025, EE Group's instructions to resellers were clear: they must not sell DJI drones below the recommended retail price. This strategy, known as resale price maintenance, is a violation of the law, as it stifles competition among retailers and ultimately results in higher prices for consumers. The ACCC's Luke Woodward emphasized this point, stating that recommended retail prices are merely suggestions and cannot be enforced by suppliers.
The consequences of EE Group's actions are significant. By agreeing to a court-enforceable undertaking with the ACCC, EE Group acknowledges its breach of the Competition and Consumer Act. As part of this agreement, the company is committed to issuing corrective notices to resellers, informing them of their freedom to set prices independently. Additionally, EE Group will implement and maintain a compliance program for three years to ensure adherence to competition and consumer laws.
This case highlights the importance of fair competition practices in the drone industry. Resale price maintenance, when practiced by suppliers, can create a barrier to entry for smaller retailers and limit consumer choice. The ACCC's enforcement actions serve as a reminder that businesses must operate within the boundaries of the law to maintain a healthy and competitive market.
For more information on resale price maintenance and its implications, businesses can refer to the ACCC's resources, including the Minimum Resale Prices page and the Authorisations and Notifications Registers. The ACCC's commitment to addressing anti-competitive agreements and practices ensures a fair and transparent business environment for all.
