{"id":66946,"date":"2016-01-28T07:00:18","date_gmt":"2016-01-28T07:00:18","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=1adaf3af3e9f7a5228d68ddd5934ae0a"},"modified":"2016-01-28T07:00:18","modified_gmt":"2016-01-28T07:00:18","slug":"press-release-statements-of-objections-issued-to-fridge-and-bathroom-suppliers","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=66946","title":{"rendered":"Press release: Statements of objections issued to fridge and bathroom suppliers"},"content":{"rendered":"
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The Competition and Markets Authority (CMA<\/abbr>) has issued separate statements of objections to the bathroom fittings<\/a> supplier Ultra<\/abbr> Finishing Limited (Ultra<\/abbr>), and to the commercial refrigeration products<\/a> supplier Foster<\/abbr> Refrigerator (Foster<\/abbr>), which is a division of ITW Ltd. <\/p>\n

Each is alleged to have introduced a minimum advertised price for internet sales, which effectively limited the ability of retailers of their products to make online sales below a specified price level. The CMA<\/abbr> alleges that both cases were a form of resale price maintenance and infringements of competition law.<\/p>\n

The CMA<\/abbr>\u2019s findings are provisional and no final conclusion has been reached regarding whether there has been a breach of competition law. <\/p>\n

Ann Pope, the CMA<\/abbr> Director responsible for these cases, said:<\/p>\n

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The internet has driven innovation in retail markets. Where \u2018traditional\u2019 businesses operating through bricks-and-mortar shops face intense price competition from online sales, suppliers may be tempted to respond by introducing practices, like minimum advertised prices, that restrict such competition.<\/p>\n

Retailers should be free to set their own sales prices online. This drives competition among rival retailers because they compete to attract consumers who are using the internet to shop around for the best deals.<\/p>\n

The CMA<\/abbr> will carefully consider representations from the parties before reaching a final decision on whether the law has been infringed.<\/p>\n<\/blockquote>\n

Notes for editors<\/h3>\n
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  1. The CMA<\/abbr> is the UK\u2019s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For CMA<\/abbr> updates, see our homepage<\/a> or follow us on Twitter @CMAgovuk<\/a>, Flickr<\/a> and LinkedIn<\/a>. Sign up to our email alerts<\/a> to receive updates on Competition Act 1998 and civil cartels cases.<\/li>\n
  2. The Chapter I prohibition of the Competition Act 1998 covers anti-competitive agreements, concerted practices and decisions by associations of undertakings which have as their object or effect the prevention, restriction or distortion of competition within the UK or a part of it and which may affect trade within the UK or a part of it. Similarly, Article 101 of the Treaty on the Functioning of the European Union (TFEU<\/abbr>) prohibits such anti-competitive agreements, concerted practices and decisions by associations of undertakings which may affect trade between EU member states.<\/li>\n
  3. The CMA<\/abbr> has produced a series of animated videos<\/a> explaining the main principles of competition law and how they affect small businesses.<\/li>\n
  4. Any business found to have infringed the Competition Act 1998 could be fined up to 10% of its annual worldwide group turnover. In calculating financial penalties, the CMA<\/abbr> takes into account a number of factors including seriousness of the infringement(s), turnover in the relevant market and any mitigating and\/or aggravating factors.<\/li>\n
  5. Each statement of objections is addressed to the following parties respectively, which the CMA<\/abbr> provisionally considers were directly involved in the alleged infringements and\/or are liable as parent companies of the undertakings directly involved in the alleged infringements.\n