Competition Appeal Tribunal upholds appeal in first ever MFN infringement case

 

Competition Appeal Tribunal upholds appeal in first ever MFN infringement case

 

The Competition Appeal Tribunal has ruled in favour of BGL (Holdings) Limited, BGL Group Limited, BISL Limited and Compare the Market Limited (Compare The Market) in its challenge to the decision of the Competition and Markets Authority (CMA) imposing penalties on Compare The Market of around £18 million for breach of Article 101 TFEU and the Chapter I prohibition.

The CMA found that Compare The Market had imposed wide “most favoured nation” (MFN clauses in its agreements with home insurers providers in relation to the use of its price comparison website (PCW).  

The CAT found that the CMA had made errors in defining the relevant market as a single market.  The CAT considered that the CMA should have defined two separate markets identifying the two sides of the platform relating to the supply of customer introduction services to home insurance providers and the supply of home intermediation services to consumers.

The CAT also found material errors in the CMA’s analysis of the effect on competition; in particular the CMA had failed to assess the significance of other channels for the purchase of home insurance by consumers.

The CAT was unable to test much of the evidence relied on by the CMA stating that much of it was anecdotal.  It was not convinced that MFNs had a potential anti-competitive effect on promotional discounts.

The CAT upheld the appeal and set aside the CMA's decision.

BGL (Holdings) Limited and others v Competition and Markets Authority [2022] CAT 36