Mall landlord Simon Property Group has settled with state authorities over its investigation of “anticompetitive tactics” at Woodbury Common Outlet Center in Central Valley, New York.
According to an announcement from State Attorney General Eric Schneiderman, the firm used its “monopoly power” to suppress the development of competing outlet centers in New York City. Simon Property was said to have included radius restriction in its leases, which prevented many retailers from opening additional locations within an 11,000 square mile zone from Woodbury.
“No business should be allowed to stifle an entire industry at the expense of consumers—but for years, that’s exactly what Simon Property Group did to New Yorkers,” Schneiderman said. “Simon’s anticompetitive conduct blocked competition and drove up prices for New York consumers. That ends today. I am pleased this agreement will allow for new shopping outlets to finally open within New York City, and make affordable shopping more accessible for residents across the region.”
Simon will pay a US$945,000 fine. It has also agreed to stop its modify its contracts. According to Schneiderman, the agreement allows for the development of Brooklyn, Queens, the Bronx and Staten Island.
Full Content: Wall Street Journal
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