The CMA’s previous competition infringement decision has been upheld at the Ping competition appeal tribunal.
The CMA (Competition and Markets Authority) had previously established a breach finding against Ping Europe Limited. Ping had banned the sale of its golf clubs online which had triggered an investigation by the CMA.
Having assessed the issue, the CMA found that Ping was in breach of competition law by stopping two UK retailers from selling their golf clubs online. The Ping competition appeal tribunal has now upheld the original finding of the breach as well.
“Clear online retail signal” after Ping competition appeal tribunal decision
The Ping competition appeal tribunal decision is said to have sent an important signal to the online retail market. In what has been described as a “landmark case”, the message following the outcome of the appeal is clear. If online retailers are prevented from selling products online, manufacturers can be in breach of important competition law!
The Tribunal reportedly dismissed the appeal made by Ping. The fine Ping must pay has also been slightly revised to £1.25m.
Ping competition appeal tribunal comments
Speaking after the Ping competition appeal tribunal outcome, a spokesperson from the Tribunal itself said:
“The potential impact of the ban on consumers and retailers is real and material. It significantly restricts consumers from accessing Ping golf club retailers outside their local area and from comparing prices and it significantly reduces the ability of, and incentives for, retailers to compete for business using the internet.”
It was, however, accepted that Ping was trying to pursue a genuine commercial aim of promoting custom fitting in-store of its products. It was found that this still could have been achieved without restricting online sales, which has led to the decision.
A huge decision
The outcome of the Ping competition appeal tribunal is a huge decision. It really does send a clear message that any barriers and restrictions for sales can be breaches of vital competition law.
At the end of the day, consumers need access to compare retailers quickly and easily. The boom of online selling has allowed customers to be able to better compare prices for the best deal possible. It’s easy to see how a ban on online sales of a product can harm the consumer’s choice decisions, and lead to higher prices being charged for products.