On 26 September 2014, the Competition & Markets Authority (“CMA”) issued its final order implementing changes to the UK’s statutory audit market (the “Final Order”). By way of background, this action represents the final step in a process which commenced in March 2011 when the House of Lords Select Committee on Economic Affairs urged the Office of Fair Trading (“OFT”), the CMA’s predecessor, to investigate the UK audit market. Following an initial investigation by the OFT, an in-depth analysis of the market by the Competition Commission (“CC”) – now also subsumed into the CMA – concluded that competition in the audit market was restricted by factors which inhibit companies from switching auditors.
Continue Reading The Competition & Markets Authority Imposes Changes to the UK’s Audit Market with Significant Implications for FTSE 350 Companies

Written by Lisa Navarro

In September 2013, the Office of Fair Trading (“OFT“) issued statements of objection (“SO“) in two separate resale price maintenance cases. The first relates to the sale of sports bras, and the second to mobility scooters. Distinct products, sold in different ways, but both have allegedly been the subject of arrangements between suppliers and retailers aimed at artificially managing the prices that consumers pay.

The investigation into price fixing for sports bras was launched in April 2012. It focused on the conduct of DB Apparel UK Limited (“DBA“) with regard to its Shock Absorber range of sports bras. Between 2009 and 2011, DBA allegedly entered into nine agreements with three major department store chains covering nationwide sales of multiple products within the Shock Absorber range. The agreements contain provisions which set a fixed or minimum resale price for the products, thereby resulting in prices being higher than they might otherwise have been.

The OFT’s decision to issue an SO to Pride Mobility Products Limited (“Pride“) and a number of the retailers that sell its mobility scooters follows a market study on the mobility aids sector which concluded in 2011. Pride and its retailers are accused of being party to arrangements which prevented the retailers from advertising online prices at levels below Pride’s recommended retail price.
Continue Reading OFT investigates pricing restrictions in sale of mobility scooters and sports bras

Written by Simon Harms and Lisa Navarro

On 15 March 2012, the UK’s Department for Business Innovation and Skills (“BIS”) announced its plans for the reform of the UK competition regime. These proposals were crystallised on 23 May 2012 in the Enterprise and Regulatory Reform Bill (the “Bill”).

The proposals set out in the Bill include amendments to the existing legal rules and certain procedures, as well as a major structural shakeup of the enforcement institutions, the Office of Fair Trading (“OFT”) and the Competition Commission (“CC”). As part of a wider rationalisation of UK governmental organisations, the OFT and CC are to be merged into a single entity, the Competition and Markets Authority (“CMA”) by April 2014.

This article highlights the main institutional and operational changes that will accompany this structural shift. It goes on to consider other key proposals contained in the Bill relating to merger control and the criminal “cartel offence”.
Continue Reading Reform of the UK competition regime