Price comparison website: use of most favoured nation clauses
The CMA has reached an infringement decision after investigating suspected breaches of the Chapter I prohibition and Article 101 TFEU in the use of certain retail most favoured nation clauses by a price comparison website in relation to home insurance products.
Case timetable
| Date | Action |
|---|---|
| 9 February 2021 | Non-confidential infringement decision published |
| 19 November 2020 | Infringement decision issued |
| April 2019 to December 2019 | Considering written and oral representations on the Statement of Objections, state of play meeting with the party, further evidence gathering and analysis. |
| November 2018 to January 2019 | Receipt of written and oral representations on the statement of objections |
| 2 November | Statement of objections issued |
| March 2018 | Decision on whether to proceed with the investigation or to close the investigation |
| September 2017 to March 2018 | Initial investigation: information gathering, including issue of formal or informal information requests and responses |
| 26 September 2017 | Investigation opened |
Update on the Competition Appeal Tribunal’s (CAT) judgment
8 August 2022: The Competition Appeal Tribunal has handed down its judgment. The CAT found in favour of BGL. The full ruling can be found on the CAT’s website.
Notice of appeal
3 February 2021: BGL filed an appeal in the Competition Appeal Tribunal against the CMA’s findings in the Infringement Decision and the penalty imposed. The CMA will defend the appeal.
Non-confidential infringement decision
9 February 2021: The CMA has published a non-confidential version of the decision in this case.
- (9.2.21)
Infringement decision
19 November 2020: The CMA issued an infringement decision addressed to BGL (Holdings) Limited, BGL Group Limited, BISL Limited (BISL), and Compare The Market Limited (collectively, ‘BGL’).
The CMA found that, between 1 December 2015 and 1 December 2017, BGL infringed competition law by using wide ‘most favoured nation’ clauses in its contracts with a number of home insurance providers selling through its price comparison website, ComparetheMarket. These clauses prohibited the relevant insurers from offering lower prices on rival price comparison websites.
The CMA has imposed a financial penalty of £17,910,062 on BGL for the Infringements.
- Case summary: (19.11.20)
- Press release: CMA fines ComparetheMarket £17.9m for competition law breach (19.11.20)
Statement of objections
2 November 2018: The CMA has issued a statement of objections alleging that BGL (Holdings) Limited, BGL Group Limited, BISL Limited (BISL), and Compare The Market Limited have breached UK and EU competition law by using retail wide most favourite nation clauses in certain contracts with home insurance providers.
- Press release: ComparetheMarket home insurance deals could deny people better prices (2.11.18)
Notes
- the investigation is under Chapter I of the Competition Act 1998 (CA98) and Article 101 Treaty on the Functioning of the European Union (TFEU)
- no conclusion should be drawn that there has been an infringement of competition law at this stage and the recipients of the statement of objections will now have the opportunity to respond to the allegations
- the CMA will consider any representations it receives before any decision is taken as to whether competition law has in fact been infringed
- further detail of the CMA’s procedures in Competition Act 1998 cases is available here: CMA’s procedures in Competition Act 1998 cases.
Changes to the timing of original entries in the case timetable will be made where the estimated timing in the original timetable changes.
Contacts
- Assistant Project Director (until July 2020): Amanda Adams (020 3738 6309, amanda.adams@cma.gov.uk)
- Assistant Project Director: Nathalie Lobel-Lastman (0203 738 6789, Nathalie.Lobel-Lastmann@cma.gov.uk)
- Project Director: Christiane Kent (020 3738 6250, christiane.kent@cma.gov.uk)
- Senior Responsible Officer: Michael Grenfell (020 3738 6134, michael.grenfell@cma.gov.uk)
Last updated 8 August 2022 + show all updates
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Update on the Competition Appeal Tribunal's judgment.
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Notice of appeal. BGL filed an appeal in the Competition Appeal Tribunal against the CMA’s findings in the Infringement Decision and the penalty imposed.
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Full text of the non-confidential infringement decision published.
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The CMA has issued an infringement decision.
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Case timetable updated.
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Case timetabled updated.
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Case timetable updated.
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Timetable updated to reflect that the current phase will end in October 2019.
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Statement of objections issued.
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Timetable updated.
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First published.