Saturday, 9 November 2024

CMA reports interim concerns and potential solutions in infant formula market study

 


The Competition and Markets Authority (CMA) has published its provisional report on its market study into infant formula and follow-on formula in the UK. The CMA invites comments on its interim report by 29 November 2024.

The study concerns infant and follow-on formula as defined by European Commission Regulation 2016/127, and formulas labelled as foods for special medical purposes that can be sold without prescription under Regulation 2016/128.

The CMA found that the market has a highly concentrated structure.  It identified  concerns relating to the unintended consequences of regulations designed to support public health goals, a lack of timely, clear and impartial information for parents about formula, and companies' responses to regulations around marketing.

The CMA raised concerns about how this impacts pricing, and limited competition on formula prices at the retail level.

The CMA has explored potential solutions. Recommendations cover the provision of clear, accurate and impartial information, including on the nutritional sufficiency of infant formula products, in both healthcare and retail contexts.

The CMA recommends strengthening labelling and advertising rules to moderate the role of brand awareness in decision-making in the market.

The CMA’s provisional findings echo concerns raised by customers.  The provisional findings bring together multiple tools from competition law oriented remedies to consumer protection measures around promotions at the retail level.

The deadline for the CMA to publish its final report is 19 February 2025.

https://www.gov.uk/government/news/infant-formula-cma-sets-out-concerns-and-potential-solutions

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