Competition and Markets Authority’s updated register of advisory and warning letters reveals focus on RPM and online sales restrictions

• 20/02/2017
• Articles

On 15 February 2017, the Competition and Markets Authority (“CMA”) published an updated register of its competition law advisory and warning letters. These letters are beginning to form an increasing part of the CMA’s enforcement toolbox, and the updated information illustrates the CMA’s overall continued focus on cases involving resale price maintenance and online sales.

The CMA sends advisory and warning letters to companies when it suspects that anticompetitive conduct may be occurring, but where in light of its prioritisation principles opening a full formal investigation is not warranted. These letters invite the companies concerned to undertake a self-assessment of their practices to ensure compliance with the competition rules. A warning letter requests the company to inform the CMA as to how it will ensure compliance, whereas an advisory letter requires the company to simply inform the CMA it has received the letter.

In 2016, the CMA issued 63 warning letters covering 19 matters overall: 16 of these matters were related to resale price maintenance in the retail sector and at least 7 were related to online sales restrictions. The CMA issued 31 advisory letters covering 14 matters overall in 2016, half of which involved resale price maintenance and 6 related to online sales. Some of these letters complemented cases which the CMA further pursued. Of particular note during 2016, the CMA fined companies for online resale price maintenance in relation to commercial catering (see VBB on Competition Law, Volume 2016, No. 5) and bathroom fittings (see VBB on Competition Law, Volume 2016, No.4). Interestingly, in the context of these cases, the CMA chose to send warning letters to other entities active in the same sectors that it suspected of similar anticompetitive conduct.