CMA stops investigating the auction house industry in return for commitments
First published by Admin on August 04, 2017 in the following categories: Investigations and tagged with cma
An investigation into the auction house industry was opened on 22nd November 2016 after allegations there had been an abuse of a dominant position by introducing exclusionary and restrictive pricing in respect of online sales.
ATG Media is the largest provider of live online bidding platforms in the U.K. These platforms are used by auction houses to enable online live bidding without bidders having to attend in person. In August and September 2016, the CMA investigated allegations that ATG Media had engaged in anti-competitive conduct in relation to the provision of live online bidding auction platform services.
The alleged anti-competitive practices were as follows:
| Obtained exclusive deals with auction houses, so they don’t use other providers. |
| Prevented auction houses from getting a cheaper online bidding rate with other platforms for their bidders – through contract clauses known as most favoured nation (MFN) or price parity clauses. |
| Prevented auction houses promoting or advertising rival live online bidding platforms in competition with ATG Media. |
Infringement?
The Competition and Markets Authority (CMA) launched an investigation into suspected breaches of both Chapters I and II of the Competition Act and Articles 101, and 102 of the Treaty on the Functioning of the European Union (TFEU).
In effect, the provisions prohibit companies and organisations from practices that would be deemed as anti-competitive, such as the alleged practices above.
Commitments
As part of the CMA’s investigation, they gathered evidence from ATG Media and a range of third parties. On 29th June 2017, the CMA accepted binding commitments offered by Turner Topco Limited, ATG Media Holdings Limited, ATG Media Limited and Metropress Limited (together as ATG Media).
As the CMA decided to accept the commitments, they’ve discontinued their investigations. This also means they didn’t come to a conclusion as to whether or not the Competition Act or the TFEU was infringed by ATG Media in relation to the supply of live online bidding auction platform services.
The commitments of ATG Media are as follows:
| They won’t engage in any conduct/agreement/arrangement that will restrict any auction house from using or contracting with any competing live online auction platform for the provision of live online auction platform services. |
| They won’t engage in any conduct/agreement/arrangement that will restrict any auction house from charging fees, commissions or any form of remuneration to online bidders using a competing live online auction platform that are lower than the fees, commissions or any other forms of remuneration charged to online bidders using an ATG Media live online auction platform. |
| They won’t engage in any conduct/agreement/arrangement that will restrict the freedom of any auction house to advertise or promote services and products offered by any competing live online auction platform, including on that auction house’s own website or in their publications or any third party website. |
The commitments made by ATG Media doesn’t mean they’re admitting to their wrongdoing. One could suggest it infers some guilt – why else would they make commitments to the CMA? By providing the commitments, it allows the CMA to stop investigating. However, there’s no stopping the CMA from reopening the investigation should there be new evidence of anti-competitive conduct.
The commitments will last for five years starting from the effective date (tbc).
Image Credit: https://pixabay.com/en/hammer-bid-sale-auction-court-311343/