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We used to have a similar thing with real books in the UK, they had to be sold at the cover price and nobody was allowed to discount them (except 2nd hand or remaindered ones). But then they abolished it in the name of increasing competition and we ended up with just 1 or 2 chain stores instead of thousands of independent ones.
Unpopular from a consumer point of view, but he's actually right. Without a fixed price, competition will decrease. History shows us that.
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