Angry TDK PC card distributors have accused the vendor of leaking price cut information to wholesaler Rare Technology before telling its other distribution partners.
Two sources alleged Rare contracts manager Stephen Lynsley and TDK European sales manager Joe Amodio were co-owners of a restaurant and conducted TDK-related business on this level, but the two have both denied the allegations.
Rare was told of the planned price cuts two weeks in advance. It claimed it needed this information to include in ads that had to be completed in advance.
One of TDK's distributors described the timing of Rare's access to the prices as tantamount to giving them a clear business advantage. 'The two weeks' headstart they had meant they could go out talking to the dealer channel with information no one else had.
'They were doing deals while everyone else was in the dark.'
Amodio said: 'I am happy that TDK maintained its integrity within the channel at all times. We had to do something to help out one particular company - it was a one-off. I don't think it could have given anyone a competitive advantage.'
Lynsley said it is not unusual to offer advance warnings of price cuts.
'Sometimes we get advance notification of the prices we can advertise safely, but we don't get special treatment.'
But another TDK distribution partner said: 'We got the impression we got the information late. Rival pricing got aggressive well before we thought it would.'
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