Tuesday 21 January 2020

CMA fines tech company for failure to cooperate with market study


CMA fines tech company for failure to cooperate with market study

The Competition and Markets Authority has fined AppNexus £20,000 for late submission and failure to respond to information requests during its online platforms and digital advertising market study.

The CMA maintains that the company’s conduct adversely affected the market study.

In December 2019 the CMA released interim findings that Google and Facebook are the biggest online platforms and it recommended regulation to increase competition.

The CMA found that AppNexus completed a survey three weeks after the deadline and 14 documents were sent 10 weeks late. 

The CMA can fine a company up to £30,000 for procedural infringements of this type and it said that the £20,000 penalty was “appropriate” as a deterrent against AppNexus and others, without being disproportionate.

Responding to information requests in a market study may seem like an unwelcome task for companies on the receiving end of such requests.  Although this is the first time that the CMA has used its fining powers in this context, it sends a strong message that a market study should be treated as seriously as any investigation into the company’s own business practices even though the company is not suspected of having violated competition law.

The CMA is due to issue its final report in the market study in July 2020.

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