CMA launches market study into price comparison tools

The Competition and Markets Authority (CMA) has launched a market study into digital comparison tools (DCTs) used by consumers to compare products and services from different business.  The CMA will consider how to maximise the potential benefits of DCTs for consumers and reduce barriers to using them.

Market studies are examinations into the reasons why particular markets may not be working well taking account of regulation and other economic drivers as well as business and consumer behaviour.  Consumers’ reluctance to switching has long been a theme in the CMA’s investigations, which partly explains the focus of this study.

This is only the third time that the CMA has launched a market study since the Enterprise and Regulatory Reform Act 2013 introduced stricter procedural requirements.  The first market study (issued in April 2014) related to the supply of personal current account services and led to the retail banking market investigation.  The second (issued in January 2016) relates to the supply of legal services in England and Wales.

The CMA has invited evidence and views, including on whether it should make a market investigation reference, by 24 October 2016.  The CMA must announce within six months whether or not it is intending to make a market investigation reference and must publish its final report on the market study within 12 months.

CMA press release, Market Study Notice and Statement of Scope of Market Study, 29 September 2016