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Review of the Legal Services Market
The Competition and Markets Authority (CMA) has launched a review of the implementation and impact of the recommendations of its 2016 market study into the legal services market in England and Wales.
Booking hotels online: CMA continues to monitor practices and behaviour
The Competition and Markets Authority (CMA) continues to monitor pricing practices and behaviours for booking hotels online.
Since the completion of their investigations in 2015 into the sector, they have been actively engaged in monitoring developments. As an important sector to keep track of, their work – and that of their European competition counterparts – is clearly important.
Here is some information about the CMA’s latest publication of their work in this sector, and a brief background of the preceding events.
Ofwat Price Determinations latest developments
The Ofwat price determinations matter remains ongoing as the Competition and Markets Authority (CMA) continues its work following rejections issued to proposed price controls.
This is a matter that we continue to keep a very close eye on. Price controls can be incredibly important in a matter like this where the product is something we really do all need. Consumers must be able to afford water, no matter their earnings and financial situation.
Here is a little about the original case as well as the most recent updates and what is expected to happen next in the matter.
Hand sanitiser pricing under regulatory review
The Competition and Markets Authority (CMA) has been looking into hand sanitiser pricing over concerns that important competition laws may be being breached.
Last month, the CMA announced that they were looking into the matter that is undoubtedly tied to how the use of such products has changed during the ongoing coronavirus pandemic. Although the investigation only started last month, and no assumptions are being made, there have been some significant changes and developments so far.
Clearly, given how the markets for such products has changed over the last few months, this is an important matter that needs to be looked into.
UK roofing materials sector: updates expected soon
The investigation by the Competition and Markets Authority (CMA) that’s looking into the UK roofing materials sector remains ongoing.
We understand that more news could be issued at the end of June in-line with the current timetable in place from the CMA. So far, we have seen extensive investigations carried out over the last few years, and a formal Statement of Objections issued last year.
With an alleged cartel in place that reportedly makes up for 90% of the lead rolling market in the UK, this is a significant investigation.
Ofwat price determinations case
The Ofwat price determinations case follows a referral by four major water companies in the UK in relation to price controls that are set to go into effect for the next five years.
Price controls for the water market are put in place for the protection of the consumer. They can ensure that water is affordable and available to all, but the controls must account for the fact that private companies are providing water services and competing in the market.
If new price controls are rejected by any of the UK water companies, the matter can be referred to the Competition and Markets Authority (CMA). The CMA can make its own separate determination as a regulator with similar duties to Ofwat.
Berkshire residential estate agents competition case
Here’s the latest news involving the Competition and Markets Authority (CMA) investigation into alleged competition infringements involving Berkshire residential estate agents.
The investigation was launched in early 2018 on the basis that the CMA suspected that there may be infringements of important competition law. In June last year, the CMA issued a formal statement of objections to four estate agents with allegations of breaches, and a settlement was reached with two agents in October. More fines were then issued at the end of last year.
In the often-volatile property market, competition law breaches that leave buyers and sellers paying more simply cannot go unpunished.
CMA issue substantial Fender competition breach fine
The Competition and Markets Authority (CMA) has issued a substantial Fender competition breach fine in the sum of £4.5m.
The fine has been issued almost two years after an investigation into the prominent guitar maker was opened. In its ruling, the CMA has confirmed that Fender has admitted to breaking competition law by restricting prices for UK retailers. The fine that has been issued is therefore subject to the CMA’s leniency and cooperation protocols, which can see penalties reduced.
This is a key ruling given the size of this growing market and the fact that Fender is one of the major players in the sector.
More time allowed in the supply of groundworks investigation
More time has been allowed for representations to be made in the supply of groundworks investigation that’s currently being undertaken by the UK’s competition regulator.
The CMA (Compensation and Markets Authority) issued their statement of objections back in April 2019 and announced their provisional findings. The CMA confirmed that they suspect there are three suppliers who are engaging in behaviour that may distort competition in the market. Until final determinations are made, these are just allegations at this stage.
Notably, the CMA decided to continue with their investigations, so we assume that they must believe that there is some evidence to support their allegations.
Most favoured nation clauses in price comparison websites sector
As it has been a while since we looked at this one, here’s the latest in the investigation into alleged most favoured nation clauses in the price comparison website sector.
The investigation that’s being carried out by the Competition and Markets Authority (CMA) is over the alleged use of such clauses for price comparison websites in relation to insurance products. The term “most favoured nation” originates from international trade agreements, whereby more favourable trade terms have been used between countries who favour each other more. In terms of competition law, it’s about contractual provisions whereby a seller may provide their best terms specifically to a particular buyer.
Such behaviour can restrict and distort competition, which is why it’s important for the CMA to look into it.