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01.10.2024 | 🇬🇧 UK competition authority
The CMA has published heat maps revealing the geographic spread of warning and advisory letters sent to businesses suspected of breaching competition law in the UK. These letters are part of the CMA's enforcement toolkit, and failure to act on them can lead to severe consequences, including financial penalties and director disqualification.
From 2018 to 2023, the CMA sent a total of 557 letters to businesses across various sectors, such as household goods, technology products, heating equipment, and clothing. The number of letters varied by region, reflecting the distribution of businesses across England, Scotland, Wales, and Northern Ireland.
The most common issue addressed in the letters is 'resale price maintenance' (RPM), which restricts retailers from discounting products below a certain price. The CMA's intervention in RPM practices has led to price reductions in sectors like Bathroom Fittings and Light Fittings, benefiting consumers.
The CMA operates a leniency policy allowing businesses and individuals to provide evidence of illegal activities, potentially leading to reduced penalties or immunity. Businesses concerned about compliance should seek legal advice and consider self-reporting to the CMA.
Juliette Enser, Executive Director of Competition Enforcement at the CMA, emphasized the importance of fair competition practices and urged businesses to review their operations regularly to ensure compliance with competition law.
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