5th Jul 2023 11:59
(Alliance News) - JD Sports Fashion PLC on Wednesday said it has taken a number of steps to strengthen its competition compliance programme, after it avoided a fine from the UK Competition & Markets Authority.
This was in response to the CMA's investigation into suspected breaches of competition law by the Lancashire-based, FTSE 100-listed sportswear retailer and Leicester City Football Club Ltd.
On Wednesday, the CMA said it provisionally found both parties to have colluded to restrict competition in the sales of Leicester City-branded clothing, including replica kits, in the UK.
Leicester will be fined up to GBP880,000 after admitting to the anti-competitive arrangement with JD Sports.
JD Sports said it signed a leniency agreement with the CMA on Friday last week, which granted JD full immunity from any fines after cooperating "fully" with the UK competition watchdog since bringing the case to the CMA's attention in January 2021.
In accordance with the CMA's leniency guidance, JD Sports said it will continue to maintain complete and continuous cooperation with the CMA until the conclusion of its investigation.
JD Sports said no current or former directors or senior management of JD Sports were involved in the offending conduct, which took place from 2018 to 2021.
JD Sports has taken a number of steps to strengthen its competition compliance programme and the board reaffirms its commitment to making the necessary resource available, internal and external, to ensure that this is embedded into its daily operations," JD Sports said.
CMA Executive Director of Enforcement Michael Grenfell added: "Football fans are well-known for their loyalty towards their teams. In this case we have provisionally found that Leicester City FC and JD Sports colluded to share out markets and fix prices - with the result that fans may have ended up paying more than they would otherwise have done.
"Both parties have now admitted their involvement, allowing us to bring the investigation to a swift conclusion. The fine that Leicester City FC and its parent companies have agreed to pay sends a clear message to them and other businesses that anti-competitive collusion will not be tolerated."
Shares in JD Sports were down 0.2% to 147.35 pence each in London on Wednesday around midday.
JD Sports in September was fined GBP1.5 million by the CMA for anticompetitive behaviour, also relating to football kit.
The CMA found that JD Sports and Elite Sports Group Ltd broke competition law by fixing the retail prices of a number of Rangers-branded replica kits and other clothing products from September 2018 until July 2019. Elite Sports was fined GBP459,000. Rangers FC - a Glasgow, Scotland football club - was fined GBP225,000.
By Greg Rosenvinge, Alliance News reporter
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