Archives
Booking hotels online: CMA continues to monitor practices and behaviour
The Competition and Markets Authority (CMA) continues to monitor pricing practices and behaviours for booking hotels online.
Since the completion of their investigations in 2015 into the sector, they have been actively engaged in monitoring developments. As an important sector to keep track of, their work – and that of their European competition counterparts – is clearly important.
Here is some information about the CMA’s latest publication of their work in this sector, and a brief background of the preceding events.
Hand sanitiser pricing under regulatory review
The Competition and Markets Authority (CMA) has been looking into hand sanitiser pricing over concerns that important competition laws may be being breached.
Last month, the CMA announced that they were looking into the matter that is undoubtedly tied to how the use of such products has changed during the ongoing coronavirus pandemic. Although the investigation only started last month, and no assumptions are being made, there have been some significant changes and developments so far.
Clearly, given how the markets for such products has changed over the last few months, this is an important matter that needs to be looked into.
UK roofing materials sector: updates expected soon
The investigation by the Competition and Markets Authority (CMA) that’s looking into the UK roofing materials sector remains ongoing.
We understand that more news could be issued at the end of June in-line with the current timetable in place from the CMA. So far, we have seen extensive investigations carried out over the last few years, and a formal Statement of Objections issued last year.
With an alleged cartel in place that reportedly makes up for 90% of the lead rolling market in the UK, this is a significant investigation.
Ofwat price determinations case
The Ofwat price determinations case follows a referral by four major water companies in the UK in relation to price controls that are set to go into effect for the next five years.
Price controls for the water market are put in place for the protection of the consumer. They can ensure that water is affordable and available to all, but the controls must account for the fact that private companies are providing water services and competing in the market.
If new price controls are rejected by any of the UK water companies, the matter can be referred to the Competition and Markets Authority (CMA). The CMA can make its own separate determination as a regulator with similar duties to Ofwat.
Retail banking market investigation: the latest
The have been some developments lately in the retail banking market investigation that’s being conducted by the Competition and Markets Authority (CMA).
Since 2016, the CMA has been looking into the supply of personal and current accounts to small and medium-sized enterprises (SMEs). The investigations were launched off the back of concerns that there was a lack of effective competition in the sector, arising from two studies prior conducted by the CMA. Working with the Financial Conduct Authority (FCA), measures have been taken to improve competition in this multi-billion-pound sector.
Here’s the latest.
Roll-over contracts for online gaming investigation
Last April, the Competition and Markets Authority (CMA) initiated an investigation into roll-over contracts for online gaming.
The online gaming sector has grown exponentially in recent years, with at least one console a staple in most modern houses these days, I would assume. The monetisation of online gaming has led to more purchase options for the consumer, so the costs of being involved in online gaming is something that should be carefully considered.
In the same way that the CMA has been looking into contract factors for things like broadband and telecommunications, they’re also keen to know if the online gaming sector is being fair. As this is just the initial investigation stage, no assumptions are being made as to whether important laws are being broken or not.
Latest in the funeral directors market investigation
The funeral directors market investigation that’s being conducted by the CMA (Competition and Markets Authority) remains ongoing.
In terms of the latest happenings and goings on, here’s a brief update based on information from the CMA about the progress of their important work in this sector.
It goes without saying that this is another important investigation for the competition regulator. People are in obvious need of funeral and crematorium services, and the need for such services will likely increase with population growth.
The musical instruments and equipment investigation
The musical instruments and equipment investigation is a matter that’s currently being conducted by the Competition and Markets Authority (CMA).
The market for musical equipment and instruments has grown exponentially in recent decades. There’s now far greater access to instruments at more affordable prices, and the materials available online for people to learn to play are vast. So many youngsters want to be in bands, and it’s great that there’s such an appetite for musical creativity.
But the CMA has been looking into another side of the sector, and it’s one where foul play is being suspected.
More time allowed in the supply of groundworks investigation
More time has been allowed for representations to be made in the supply of groundworks investigation that’s currently being undertaken by the UK’s competition regulator.
The CMA (Compensation and Markets Authority) issued their statement of objections back in April 2019 and announced their provisional findings. The CMA confirmed that they suspect there are three suppliers who are engaging in behaviour that may distort competition in the market. Until final determinations are made, these are just allegations at this stage.
Notably, the CMA decided to continue with their investigations, so we assume that they must believe that there is some evidence to support their allegations.
Most favoured nation clauses in price comparison websites sector
As it has been a while since we looked at this one, here’s the latest in the investigation into alleged most favoured nation clauses in the price comparison website sector.
The investigation that’s being carried out by the Competition and Markets Authority (CMA) is over the alleged use of such clauses for price comparison websites in relation to insurance products. The term “most favoured nation” originates from international trade agreements, whereby more favourable trade terms have been used between countries who favour each other more. In terms of competition law, it’s about contractual provisions whereby a seller may provide their best terms specifically to a particular buyer.
Such behaviour can restrict and distort competition, which is why it’s important for the CMA to look into it.