ComparetheMarket: CMA imposes first price parity penalty
The Competition and Markets Authority (CMA) has found that BGL (Holdings) Limited, BGL Group Limited, BISL Limited and Compare The Market Limited (‘ComparetheMarket’) breached the Chapter I prohibition and Article 101 TFEU by imposing wide ‘most favoured nation’ (MFN) provisions.
Wide MFN clauses ban companies from offering rival comparison sites cheaper rates, while narrow MFN clauses ban them from offering lower prices on their own websites.
The CMA imposed a fine of £17.9 million for the infringement, which it found was in operation between December 2015 and December 2017.
The restrictions were imposed on home insurance providers selling through its price comparison platform.
This is the first time the CMA has fined a company for using wide MFN clauses.
The Office of Fair Trading has previously accepted commitments from Amazon to remove these clauses from contracts with sellers using its marketplace platform.
https://www.gov.uk/government/news/cma-fines-comparethemarket-17-9m-for-competition-law-breach
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