Friday 7 October 2016

CMA closes competition investigation into price comparison websites

The Competition and Markets Authority has decided to close an investigation into suspected infringements of Article 101 TFEU and the Chapter I prohibition by websites that offer energy tariff comparisons in relation to paid advertising.
Ofgem was initially handling the investigation, which it transferred to the CMA in June 2016.
The CMA had decided not to pursue the investigation on account of administrative priorities. The CMA has noted that remedies imposed in the energy market investigation aim to increase the nature and extent of competition between price comparison websites in the energy sector.
Separately, the CMA has launched a market study into digital comparison tools where it will be able to investigate further the nature of competition between service providers and comparison websites. 
It is not unusual for market investigations or similar inquiries by competition authorities to lead to related action under competition law.  The 2008 Groceries market investigation reference by the Competition Commission prompted or coincided with competition law interest by the OFT in certain related markets including tobacco and dairy products. 
The CMA says that it may revisit its administrative priorities for antitrust enforcement in light of the evidence obtained through its market study.  It has also encouraged businesses to contact the CMA if they consider that the practices of price comparison websites and service providers are restricting competition.
CMA statement, 6 October 2016

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