The German Federal Cartel Office has pressured Danish Lego into adjusting its discount system. Until now, online retailers often got lower discounts than physical stores.
New criteria
Lego says it has now altered its system, putting everyone on equal footing. Previously, retailers were handed discounts based on the amount of floor space they gave to Lego products. That meant online retailers got lower discounts and were forced to sell Lego at a higher price.
According to the German Federal Cartel Office, that system was not legal and that is why Lego has now altered the system. The Danish company believes its new discount system should better reflect the current market, with web shops as a major component.
The German Federal Cartel Office already issued warnings to other brands, for the same reason: putting online channels at a disadvantage. Most often, companies do not want to devalue their brand because of cheaper online offers.
