That technology, they say, may be what's really worrying NARM's members. Still, Richard E. Donovan, an antitrust specialist at New York law firm Kelley, Drye and Warren, says companies that restrict their links to selected retailers run the risk of violating the law. So any kind of restriction on someone else's right to trade is at least potentially an antitrust violation. Donovan believes market share may be the key factor in deciding the Sony case. To be conservative, anything below 25 percent market share would make it very unlikely that a restriction imposed on retailers is going to be considered unlawful.
Some vendors say that effectively forces non-Sony retailers to promote the competition.
But Horovitz isn't backing down. A buy button on a Web site doesn't make you a retailer. CFO Publishing Corp. All rights reserved.