SRAM wins court case - Bike Magic

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SRAM wins court case



SRAM, manufacturers of Gripshift have won their court
battle with Shimano over unfair competitoin. Trade bible Bicycle Retailer & Industry
News reports that on Monday, a California jury agreed with SRAM in its pricing dispute
with Shimano, ruling that the Japanese component maker priced its shifter below cost
for the purpose of eliminating competition. This was a violation of California business
code. Final damages are pending but the jury awarded approximately $9 million.

Quoted in Bicycle Retailer & Industry News, Stan Day, SRAMís president said “Shimano
is a big company with a diverse product line. The jury found that they have the ability
and desire to target a single component using other components to subsidize it. Selling
individual components below cost allows them to keep us and other smaller manufacturers
out of the market. Now that the jury has ruled against them it hopefully signals
that we and other smaller component makers have a better chance at competing,”.
Shimano declined to comment on the decision.




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