Last year in March 2021, nine companies appealed to the Competition and Markets Authority (CMA) against Ofgem’s changes to energy licences. A price control decision made by Ofgem in December in the previous year resulted in changes to the prices that energy companies could charge to customers. As the energy licence modification appeals progressed, permission to appeal was granted and hearings were set for later in the 2021 period.
This case was not the first time Ofgem’s policy changes have been met with opposition from energy companies, with several energy companies participating in another appeal against the gas and electricity regulator, which concerns its changes to transmission charges.
As the competition regulator, the CMA can give a final decision on the energy license modification appeals once all matters have been considered. A final order was subsequently published at the end of last year, and you can read the relevant information and outcomes here.
First published by Author on February 02, 2022 in the following categories: Advertising Consumer Law Digital Industry Investigations Market Dominance Abuse Pricing Selling Restrictions and tagged with advertising | cma | competition law | consumer law | contracts | investigations | market abuse | pricing
Last year, the Competition and Markets Authority (CMA) published the details of its full decision having fined ComparetheMarket £17.8m for reportedly breaching competition law. The investigation that had been concluded by the UK’s competition regulator led to the finding that the famous price comparison website was said to have broken the law by including a most favoured nation clause in some of the contracts it had with home insurance providers.
Over the course of December 2015-December 2017, ComparetheMarket is said to have used the clause to retain its domination of the comparison website market. The knock-on effect may have been the prevention of healthy growth of its competitors and possibly restricting customers from finding better deals on their home insurance.
Designed to empower consumers to find bargains in a crowded and confusing market, price comparison websites should be on the side of their users. This is why it was concerning that ComparetheMarket had been restricting competition seemingly for their own gain. The enforcement action taken by the CMA hopefully helped to restore competitiveness in the digital price comparison market, and is a real example of where the most favoured nation clause can lead to problems for competition law.
First published by Author on January 05, 2022 in the following categories: Healthcare Industry Investigations Price Fixing Price Hikes Pricing and tagged with cma | competition law | consumer law | healthcare | investigations | Pharmaceuticals | price fixing | pricing
In late 2017, the CMA released a statement announcing that it had begun an investigation into suspected anti-competitive pharmaceuticals agreements between “various parties”.
The pharmaceutical companies under review were kept anonymous until 2019. Then, according to the CMA, they alleged that Alliance Pharmaceuticals, Focus, Lexon, and Medreich had reportedly made agreements to not compete in regard to supplying anti-nausea drug Prochlorperazine.
In January, the CMA published an update regarding their investigation, which was set to conclude in Autumn 2021. As the case approaches its end, we look back at investigation so far and assess the potential damage the anti-competitive agreements may have caused.
Many businesses have made great leaps in their development due to technology, and the CMA’s (Competition and Markets Authority) Digital Markets Taskforce was created to investigate how competition could be regulated in a way befitting of the digital age. Asked by the government to carry out an advisory report, the CMA look to have made good on this goal, having published their findings and recommendations in December last year.
The revamped approach to digital firms will hopefully promote fair competition and reaffirm the rights of consumers, two of the key principles that must be there to ensure for fair competition. Both can be essential to ensuring a level playing field, and any failure in respect of these principles could constitute a breach of competition law. Breaches of competition law can often be very bad for the consumer, so the work of the CMA and other regulators is vital.
Earlier this year, the Competition and Markets Authority (CMA) granted an appeal involving SSE (Scottish & Southern Energy) to review energy code modifications decided by Ofgem, the UK government’s energy regulator. The SSE code modifications appeal reportedly takes issue with Ofgem’s move to ensure rules about charges to use the electricity transmission network are properly applied.
Ofgem asserts that the rule is currently being misinterpreted, meaning that customers are currently paying over the odds as energy generators are taking their money to cover transmission charges. Hearings have been set to take place this year.
The SSE code modifications appeal is based on the energy company’s belief that Ofgem is incorrectly applying the rules surrounding transmission charges. According to SSE, the cut to company returns made by the increased costs could mean that energy generators may find it harder to meet the UK’s ambition of achieving net-zero emissions by 2050.
First published by Author on October 06, 2021 in the following categories: Advertising Care Homes Consumer Law Covid-19 Industry Investigations Latest and tagged with advertising | care home | cma | competition law | funerals market | investigations
The CMA has finally published their concluding report on the funerals competition investigation which has been ongoing for several years, after it began in June 2018. Revealed to the public in mid-December, the report set out a series of suggested “sunlight remedies” to be applied in the funerals market sector.
These remedies are designed to empower consumers further when it comes to selecting funeral services, and to ensure that the sector remains under scrutiny following the investigation. The Remedies Implementation timetable was also published as of 8th January 2021, which set a deadline for implementing remedial action by 17th June 2021.
While there has been no action taken or fines issued as a result of this investigation so far, the CMA’s concerns for the funeral industry remain significant. As believers in fair competition, it is important that regulators work hard to make sure that business practices are fair for companies and customers. We believe that the thorough investigation has demonstrated strong support for the rights of the consumer in this industry.
First published by Author on September 08, 2021 in the following categories: Cartels Market Sharing Price Fixing Price Hikes Pricing and tagged with cartels | cma | competition law | investigations | marktet sharing | price fixing | pricing
The Competition and Markets Authority (CMA) has previously confirmed the denial of an appeal made by FP McCann Ltd, a company understood to be involved in an alleged precast concrete drainage cartel, who reportedly sought to evade the £2.5m issued to them for their reported infringement of competition law.
The earlier update with regards to the cartel investigation marks an end to the four-year legal case. It is understood that several companies had previously either admitted to their illegal practice or accepted penalties, while FP McCann lodged an appeal in December 2019 with the hope that the ruling would be overturned.
The CMA’s final decision looks to mark a victory for businesses and consumers across the UK, setting an example that any form of illegal price-fixing and collusion will not be tolerated by the watchdog.
First published by Author on August 04, 2021 in the following categories: Consumer Law Covid-19 Industry Investigations Latest Travel and Holidays and tagged with cma | consumer law | coronavirus | holiday deals | hotels | investigations | market study | travel
In March 2020, the Competition and Markets Authority (CMA) announced its launch of a taskforce to tackle the challenges faced by businesses and consumers during the coronavirus pandemic. As part of the taskforce, the CMA later launched an investigation into COVID-19 package holiday cancellations, which has now been ongoing since last summer.
The decision to launch the investigation was made by the CMA following reports that some package holiday providers had been withholding refunds, despite the fact customers were forced to cancel holidays due to lockdown restrictions either within the UK or abroad.
In our eyes, no customer could have foreseen the coronavirus pandemic, and it is important that consumers are protected in these exceptional circumstances. We hope that the CMA’s continued pressure on the travel industry will ensure that all customers receive the refunds that they could be entitled to.
First published by Author on July 07, 2021 in the following categories: Cartels Compensation Claims Industry Investigations Price Fixing Pricing and tagged with cartels | cma | competition law | financial | investigations | price fixing | pricing
The Competition and Markets Authority (CMA), the government body that regulates business competition in the UK, previously published an update with regards to its investigation into the financial services sector relating to alleged suspected anti-competition arrangements.
The update followed the UK government’s declaration of a post-Brexit trade deal with the European Union, with the CMA announcing that the investigation will continue beyond the conclusion of the exit transition period. Previously, the investigation was also seeking to ascertain whether an infringement of the Treaty on the Functioning of the European Union (TFEU) had occurred, but now it will proceed in respect of UK competition law, solely investigating the possibility of a breach of the Competition Act 1998 (CA98).
In March, the CMA announced its intention to begin a children’s social care study in an effort to understand the rising costs of care and lack of supply reportedly affecting the sector. The review is only a preliminary step, but it could lead to future recommendations or, potentially, a full investigation into social care.
The announcement is said to have come following concerns from other organisations, which have raised the issue of private sector provision of social care and the high profits these private providers may be reaping. In January, Josh MacAlister, chair of the Independent Review of Children’s Social Care in England, wrote to the CMA asking for the social care market to be investigated.
There is no evidence to suggest that the CMA is looking into anti-competitive practices in children’s social care, or breaches of competition law. Instead, the CMA is investigating how profit-driven companies may be affecting the provision of appropriate placements for children.