Cheating Monitor Reported The Davidge files recount more than the fixing of commission fees.
The growing popularity of fairs can also be attributed to a scandal that rocked the art market beginning in January 2000, when Christie's chief executive officer (CEO), Christopher Davidge, provided the U.S. Justice Department with damning evidence of past collusion between Sotheby's and Christie's over the fixing of commission rates.
The decision concluded an investigation into the infant formula industry for what the commission said was price fixing of baby formula in the Chinese market.
Because the plaintiffs have charged the agencies with fixing the commissions of potentially thousands of models over a period of years and because damages in antitrust lawsuits are tripled, a verdict against the agencies could cost them tens of millions of dollars -- much more, the agencies have said, than they have on hand.
"What the hell's that?" When Sotheby's former chairman explained that he had been convicted of fixing seller's commissions with the chairman of Christie's, the inmate seemed incredulous.
In its latest round of cartel-busting, the commission levied fines of euro101m ($90.4m) for fixing commissions on the exchange of the 12 euro-area currencies since 1997.
The arrangements -- beyond the already admitted collusion of fixing the commission fees paid by sellers -- paint a picture of competitors operating not so much as cutthroat rivals but almost as cozy partners, happy to consult each other on matters big and small to the detriment of their customers.
Furthermore, throughout his trial last November and December on charges of fixing seller's commissions with his counterpart at Christie's, the archrival auction house, his age was repeatedly reported as 76, with no quibble from him or his lawyers.
They recounted secret conversations and meetings in apartments, restaurants and limousines to discuss fixing the commissions paid by thousands of customers, dividing up superrich clients and a host of other steps to stifle competition and pump up profits.
A subsequent agreement fixed the amount of commissions at $12.8 million, according to court records.
