JD Sports and Footasylum Executives Exchanged Sensitive Info Without Reporting to CMA
- CMA fines JD Sports £4.3m for breaching rules
- Executive chairman and CEOs of JD Sports and Footasylum exchanged sensitive information without reporting it to CMA
- JD Sports fined £2.5m for failing to prevent disclosure of CSI, additional £800k for passing on two occasions, and £1m for not notifying CMA about the exchange
- CMA considers penalty proportionate, won’t affect JD Sports significantly
- JD Sports denies allegations of deliberately deleting phone records
- Retailer says it has already taken measures to strengthen processes and will continue working with CMA on divesting Footasylum
The Competition and Markets Authority (CMA) has fined JD Sports £4.3m for failing to adhere to certain aspects of an Interim Order during its review of the Footasylum acquisition. The CMA suspected a breach of the IO as Peter Cowgill, JD Sports’ executive chairman, and Barry Bown, Footasylum’s CEO, exchanged business-critical information without notifying the CMA. JD Sports was fined £2.5m for failing to prevent disclosure of CSI on two occasions – one in a car park and another over the phone. Additionally, it faced an extra £800k fine for sharing CSI and £1m for not informing the CMA about the exchange. The CMA considers the penalty proportionate, as it represents 0.063% of JD Sports’ global turnover and won’t impact the company disproportionately. However, JD Sports denies allegations of deleting phone records. It believes that its efforts to ensure compliance were misrepresented by the CMA. The retailer has already implemented additional measures to strengthen processes and will cooperate with the CMA in divesting Footasylum as per November 2021’s decision.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the penalty imposed on JD Sports by the Competition and Markets Authority (CMA) for failing to comply with an Interim Order issued during its review of the Footasylum acquisition. It also includes JD Sports’ response to the allegations, clarifying their stance on the matter.
Noise Level: 3
Noise Justification: The article provides relevant information about a fine issued by the Competition and Markets Authority (CMA) to JD Sports for failing to comply with an Interim Order during its review of the Footasylum acquisition. It also includes JD Sports’ response to the penalty and their plans to work constructively with the CMA on divesting Footasylum. The article stays on topic and provides evidence (the fine amount) but could benefit from more analysis or context about the implications of this event for the companies involved.
Financial Relevance: Yes
Financial Markets Impacted: JD Sports and potentially related retail companies
Financial Rating Justification: The article discusses a fine imposed on JD Sports for failing to comply with an Interim Order issued by the CMA during its review of the Footasylum acquisition. This impacts JD Sports financially through a penalty, which may have some impact on the company’s profit and net assets. It also mentions the ongoing process of divesting Footasylum, which could affect related retail companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the financial penalty imposed on JD Sports can be considered as a minor impact due to its small percentage of their global turnover and profit.
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