CMA Accuses JD Sports, Elite Sports, and Rangers Football Club of Colluding to Increase Retail Prices
- JD Sports faces potential fine over price-fixing allegations
- CMA provisionally found competition law violation
- Rangers FC merchandise pricing fixed between 2018 and 2019
- JD Sports increased retail prices by nearly 10% to match Elite’s prices
- Elite and JD Sports colluded on discounts during the 2019 football season
JD Sports is facing a potential fine after the CMA provisionally found that the group, alongside Elite Sports and Rangers Football Club, broke competition law by fixing the retail price of Rangers FC merchandise. The regulator alleged that JD Sports and Elite Sports fixed the prices of a ‘number’ of Rangers-branded replica kits between September 2018 and July 2019, with all three groups colluding to stop JD Sports undercutting the price of the shirt on Elite’s Gers Online store. The CMA said it is also concerned that Elite and JD Sports, without involvement from Rangers, colluded to fix the retail prices of Rangers-branded clothing, including training wear and replica kit, over a longer period. Both JD Sports and Elite applied for leniency during the CMA’s investigation and ‘confessed to cartel activity’. The CMA said that ‘provided they continue to cooperate with the investigation, each will receive a reduction on any financial penalties the CMA may decide to impose’. Michael Grenfell, executive director of Enforcement at the CMA, said: ‘We don’t hesitate to take action when we have concerns that companies may be working together to keep costs up. Football fans are well-known for their loyalty towards their teams. We are concerned that, in this case, Elite, JD Sports and, to some extent, Rangers, may have colluded to keep prices high, so that the 2 retailers could pocket more money for themselves at the expense of fans.’ JD Sports said in a statement: ‘The CMA’s findings are, at this stage, only provisional and the group will now review them with its advisers. The CMA will consider any representations that are made before issuing its final findings. As the CMA has noted, JD has cooperated fully with the CMA and, provided this continues, JD will receive a reduction on any financial penalties that the CMA may decide to impose.’ In addition, the group said it intends to recognise a £2m provision in its results for the full-year ended 29 January 2022, representing its best estimate of the liability payable in respect of the development, including associated legal costs.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the CMA’s provisional findings against JD Sports, Elite Sports, and Rangers Football Club for potentially fixing prices of merchandise. It includes details from both sides of the story and explains the potential consequences.
Noise Level: 3
Noise Justification: The article provides relevant information about a potential fine imposed on JD Sports and Elite Sports for fixing prices of Rangers FC merchandise. It also mentions cooperation from both companies with the CMA investigation. However, it lacks in-depth analysis or exploration of the consequences of such actions on consumers and the market.
Financial Relevance: Yes
Financial Markets Impacted: JD Sports and Elite Sports
Financial Rating Justification: The article discusses potential fines for JD Sports and Elite Sports for breaking competition law by fixing prices of Rangers FC merchandise, which could impact their financial performance and profitability. It also mentions a £2m provision recognition in JD Sports’ results.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article.
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