CMA Imposes £880,000 Fine on Football Club and Associated Companies
- JD Sports avoids fine despite breaking competition law with Leicester City FC
- CMA imposes £880,000 fine on Leicester City FC Limited, King Power International Co. Limited and V & A Holding Co. Limited
- Immunity granted under CMA’s leniency programme for reporting conduct
- Leicester City FC admitted to alleged infringement and agreed to pay the fine
JD Sports has managed to avoid a fine despite breaking competition law with Leicester City FC, as announced by the Competition and Markets Authority (CMA). The CMA imposed an £880,000 fine on Leicester City FC Limited, King Power International Co. Limited, and V & A Holding Co. Limited. JD Sports reported the conduct to the CMA and benefited from immunity under its leniency programme. On 5 July, the CMA revealed that the two companies had colluded to restrict competition in the sales of Leicester City-branded clothing in the UK. In August 2018, JD Sports agreed to stop selling Leicester City FC-branded clothing for the upcoming season and, in 2019, also agreed not to undercut the football club online by making the products exempt from its free online delivery offer for all orders over £70. Leicester City FC Limited admitted to participating in the alleged infringement and agreed to pay the fine. Michael Grenfell, executive director of enforcement at the CMA, said: ‘The fine that Leicester City FC and its parent companies have agreed to pay sends a clear message to them and other businesses that anti-competitive collusion will not be tolerated.’
Factuality Level: 8
Factuality Justification: The article provides accurate information about the situation involving JD Sports, Leicester City FC, and the Competition and Markets Authority (CMA), as well as the fines imposed on the involved parties. It also includes relevant details about the collusion and the leniency programme. The article is not sensationalist or opinionated, and presents facts without any logical errors or inconsistencies.
Noise Level: 3
Noise Justification: The article provides relevant information about the CMA’s decision and the fines imposed on Leicester City FC Limited, King Power International Co. Limited, and V & A Holding Co. Limited for breaking competition law. It also mentions JD Sports’ role in reporting the conduct to the CMA and receiving immunity from fines under its leniency programme. The article stays on topic and provides evidence of the companies’ actions. However, it lacks analysis or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: JD Sports, Leicester City FC Limited, King Power International Co. Limited, V & A Holding Co. Limited
Financial Rating Justification: The article discusses a fine imposed on Leicester City FC and its parent companies for breaking competition law, which impacts the financial markets by affecting the businesses involved in the sports retail industry.
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 article, and the situation described is a legal and judicial event with a minor impact due to the fine imposed on Leicester City FC Limited, King Power International Co. Limited, and V & A Holding Co. Limited.
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