“Are you sure you’re getting the best deal?” – CMA launches study into Digital Comparison Tools
The UK’s Competition and Markets Authority (CMA) recently launched a study into Digital Comparison Tools.
Their concerns are centred on how the tools can limit competition through an alleged lack of transparency and lack of information they give to their consumers. The CMA will specifically review the private motor insurance, energy, and banking sectors.
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In early September, the CMA announced an investigation into the merger between Australian gambling operator, Tatts, and Austrian Gaming Giants, Novomatic. The merger came when Talarius U.K. (subsidiary company of Tatts) failed to reach their targeted profits and sold on their U.K. division to Novomatic on 24 June for £116 million.
The merger could be seen as ‘fishy’ as both companies are seen as big players in the British Adult Gaming industry, with Talarius machines operating in approximately 170 venues across the U.K.
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UK Opioid medication company sued by 36 U.S. States for anticompetitive conduct
A UK based producer of opioids, Indivior Plc, is being sued in America by 36 States for alleged anticompetitive behaviour.
The medication they produce – Suboxone – is used to treat addictions to heroine and pain killers, which are reported as growing problems in America, according to news sources.
They are alleged to have blocked access to cheaper alternatives of their medication, forcing users to pay the higher prices they enforce.
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Japanese digital advertising giants Dentsu have acknowledged and apologised for overcharging hundreds of companies using their services for online advertising.
Dentsu Inc have reportedly overcharged 111 companies, which has been seen as a surprise given that the company is renowned for having a far reach across Japan as well as being known for avoiding the headlines for the wrong reasons.
The Dentsu overcharging scandal may have unfortunately cast the company in a very different light though.
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European Commission fines Altstoff Recycling Austria (ARA) 6m Euros for competition hindrance
The EU Commission has fined Altstoff Recycling Austria (ARA) 6m Euros for reportedly blocking competitors from entering the market in Austria for household packaging waste services.
The investigation found that they hindered competition between 2008 and 2012 and have been found in breach of EU antitrust legislation – which is essentially competition rules and regulations on the continent.
It’s a huge fine from what is a serious breach of the rules; although the fine has been reduced by 30% for the company’s cooperation with the Commission’s investigations.
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The CMA (Competition and Markets Authority) have been investigating the merger situation of Arriva Rail North and Northern rail franchise to identify whether competition may be affected.
It’s always a danger when competition could be lessened through companies merging together and / or acquisition situations, which is why the CMA often gets involved in these scenarios.
The CMA has completed their initial findings and has identified some areas of the market which may face a substantial lessening of competition.
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Cash machine merger being investigated by the CMA over competition concerns
The completed Diebold / Wincor Nixdorf merger has led to a CMA (Competition and Markets Authority) investigation as to whether the merger will result in concerns for competition in the market.
The investigation has been called an “in-depth investigation” because there is already a concern that the merger will result in the “substantial lessening” of competition in the market.
The companies are being asked for undertakings, or they could face sanctions from the CMA.
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Hain Frozen Foods and Orchard House Foods Competition Merger Inquiry
The CMA (Competition and Markets Authority) is investigating the completed acquisition by Hain Frozen Foods UK Limited of Orchard House Foods Limited.
With any merger and acquisition activity, it’s important to ensure that competition in the market is not lessened through a reduction in the amount of competitors competing in the market. If you only have five or six competitors, and two of them merge, you’re now down to only three of four competing against each other.
Off the back of these business activities, the CMA will usually have a look in to whether there is any cause for concern.
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Energy price comparison websites being investigated for anti-competitive behaviour
Third party intermediaries / price comparison websites are being investigated by the CMA (Competition and Markets Authority) for suspected anti-competitive behaviour.
Ofgem had originally been investigating the issue which has now been formally transferred to the CMA to complete the enquiries. The investigation is in to whether there has been a breach of the Competition Act by companies allegedly agreeing to behaviours relating to the use of keyword search advertising online.
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Arriva North and Northern Rail merger update
The Competition and Market Authority (CMA) is investigating whether a merger situation has taken place between Arriva Rail North and Northern Rail Limited that would result in a substantial lessening of competition in the market(s) in the United Kingdom.
On 1st April 2016 an initial enforcement notice was served by the CMA on Arriva Rail North to ensure that no action is taking place until it has been determined whether the potential merger would cause a substantial lessoning of competition.
Due to the size of the companies, there are overlaps in the market for public transport services such as bus and rail services. When a customer is presented with more than one option for a particular service, factors such as frequency, punctuality, and cost are all factors they may consider.
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