JD Sports and Leicester City FC have been found to have colluded in anti-competitive practices, as revealed by the Competition and Markets Authority (CMA). The CMA’s provisional assessment followed admissions from both parties that they had violated competition law over three consecutive football seasons. As part of the settlement, Leicester City FC agreed to pay a fine of up to £880,000 in accordance with the CMA’s policies.
During their investigation, the CMA discovered several instances of market sharing by JD Sports and Leicester City FC. As a result, JD Sports significantly reduced online sales of Leicester City FC products during the 2018/19 season. Additionally, under the practice of price fixing, JD Sports agreed to exclude Leicester City FC clothing from free delivery offers for the 2019/2020 season and part of the 2020/21 season.
Michael Grenfell, the executive director of enforcement at the CMA, emphasized the importance of strong competition among retailers in providing consumers with the best deals. Grenfell stated, The fine that Leicester City FC and its parent companies have agreed to pay sends a clear message… that anti-competitive collusion will not be tolerated.
Leicester City FC issued a statement denying any intention to unlawfully restrict the resale of the goods supplied. The club also claimed that there was no significant financial advantage to be gained from such practices, given the limited quantity of kit supplied to JD Sports.
This is not the first time JD Sports has been involved in a scandal. Last year, the company was fined £1.5 million for price fixing in relation to merchandise for Rangers Football Club.
The CMA’s findings highlight the need for fair competition in the retail industry and the importance of preventing anti-competitive practices. By addressing these issues, consumers can benefit from a wider range of choices and competitive pricing. JD Sports and Leicester City FC must now rectify their actions and ensure compliance with competition laws. By making an example of these companies, the CMA hopes to deter other businesses from engaging in anti-competitive behavior.
Retail Systems has reached out to JD Sports for comment on the findings. It is yet to be seen how the company will respond to the CMA’s provisional assessment.
It is crucial for retailers to understand and comply with competition laws to ensure a level playing field for all market participants. Businesses that engage in anti-competitive practices can face significant fines and damage to their reputation. Authorities like the CMA play a vital role in monitoring and enforcing fair competition, ultimately benefiting consumers and promoting a healthy business environment.
In conclusion, the CMA’s investigation has revealed collusion between JD Sports and Leicester City FC, leading to anti-competitive practices in the sale of branded clothing and replica kits. Both companies have acknowledged their wrongdoing, with Leicester City FC agreeing to pay a fine. The CMA’s findings serve as a reminder of the importance of fair competition and the consequences of breaching competition laws.
