A reminder this week that antitrust enforcement is not concerned
only or even primarily with big companies and national or
international markets.
The UK Competition and Markets Authority has fined an association
of estate and letting agents in Hampshire and a newspaper publisher
£775,000 for breaching the competition rules.
Three members of the association entered into an agreement which
prevented all who were members of the association from advertising
their fees and discounts in the local newspaper, the
"Surrey & Hants Star Courier". Two
additional estate agents extended the scope of the agreement, with
the co-operation of the newspaper publisher, to prevent any agents
(whether they were members of the association or not) from
advertising their fees and discounts in the newspaper.
Even though there was no agreement on prices and discounts, the
CMA investigation found that the agreements prohibiting advertising
had the object of reducing the competitive pressure on estate and
letting agents' fees in the local area. It also made
it harder for newcomers to enter the market by advertising
lower fees.
Once under investigation, the parties co-operated with the CMA and
thereby secured a 10% penalty discount. The CMA's press
release includes the following prompt:
The CMA has received complaints of potentially similar conduct
concerning alliances of estate and lettings agents and local
newspapers in other geographic locations across the UK. This
may result in further investigations into similar restrictions,
regardless of the size of company involved, particularly if they
take no steps to remove such restrictions in light of the present
investigation.
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