Category Archives: Competition and Markets Authority

Telegraph takeover: UK planning new laws to prevent foreign states owning assets

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New legislation could thwart planned £600m purchase of media group by UAE-backed consortium

The UK government plans to introduce legislation that would prevent foreign governments owning UK newspapers and news magazines in a significant move that could scupper the planned £600m sale of the Telegraph to a United Arab Emirates-backed consortium.

RedBird IMI – a partnership between a fund backed by the UAE’s vice-president, Sheikh Mansour bin Zayed Al Nahyan, and a privately owned US investment firm – is seeking to acquire one of the UK’s most influential newspaper groups.

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UK infant formula at ‘historically high’ prices, says watchdog

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Competition and Markets Authority launches full-scale investigation after finding costs have risen

The cost of infant milk remains at “historically high” levels despite some price falls in recent months, Britain’s competition watchdog has said, as it launched a full-scale investigation into baby and toddler formula.

The Competition and Markets Authority (CMA) found in November that the average price of infant formula had risen by 25% in the past two years and families could save more than £500 over the first year of a baby’s life by switching to cheaper powders. The findings were part of an analysis of pricing in 10 food categories, which also included milk and ready meals.

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Telegraph takeover decision put back by fresh inquiry into Barclay family’s UAE-backed deal

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Regulators’ reports on public interest risk now due on 11 March after late change in consortium’s structure prompts further review

A second investigation has been launched into the Barclay family’s deal to transfer control of the Telegraph newspaper group, pushing the deadline for regulators’ reports on the public interest threat it poses by more than six weeks.

The UK government moved swiftly to order the second watchdog inquiry after the Barclays’ UAE-backed consortium partner revealed a last-minute corporate structure change.

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Iceland boss hits out at parent ‘exploitation’ in baby milk market

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Richard Walker calls for price cap on infant formula as competition watchdog finds evidence of greedflation

The boss of Iceland has hit out at “exploitation” of new parents and joined calls for a price cap on baby formula after the competition watchdog found evidence of greedflation by leading manufacturers.

The Competition and Markets Authority (CMA) on Wednesday revealed manufacturers had increased prices by more than their costs during the inflation crisis, fattening profit margins and imposing an average 25% increase on shoppers in two years. It warned competition could be hampered because the market is dominated by two companies, Danone and Nestlé, which between them account for 85% of sales.

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Amazon and Facebook owner Meta agree to protect consumers, CMA says

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Sites agree to stop practices that give them an unfair advantage over businesses and shoppers

The UK’s competition watchdog has said it has secured commitments from Amazon and the Facebook owner Meta to protect consumers on their marketplaces.

The agreements come after the Competition and Markets Authority (CMA) launched separate investigations into Amazon, which sells its own products and allows sellers to retail via its online marketplace function, and Meta, which owns Facebook Marketplace.

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Asda publishes daily petrol prices online after pressure from watchdog

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Other retailers say they are working with government on implementing industry-wide comparison service

Asda has begun publishing local fuel prices at its forecourts online, becoming the first retailer to launch the service following pressure from the competition watchdog and MPs over widened profit margins at the pump.

The Competition and Markets Authority (CMA) has called on the government to introduce legislation to ensure fuel retailers provide up-to-date pricing for a new industry-wide comparison service.

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UK supermarkets cut diesel prices by 7p a litre after watchdog concerns

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Reduction follows CMA plans to grill executives about ‘sustained higher margins’ but RAC says retailers should go further

Supermarkets have cut more than 7p a litre from the price of diesel since the UK’s competition watchdog warned it would question retail bosses about unnecessarily high forecourt prices, according to the RAC.

The motoring group found that the average price of diesel fell by 7.44p a litre, from 151.02p two weeks ago to 143.58p this week, after the Competition and Markets Authority (CMA) raised concerns that retailers were making “sustained higher margins” from sales of diesel.

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UK ministers urged to intervene if Australian bank takes 100% of gas business

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Macquarie has option for all of National Grid gas transmission and metering despite tainted history of owning utilities

Ministers have been urged to intervene if the Australian banking powerhouse Macquarie pushes the button on a mooted £3bn deal to take full control of a vital part of the UK’s gas grid.

A consortium made up of Macquarie Asset Management and British Columbia Investment Management Corporation completed the acquisition of 60% of the equity in National Grid’s gas transmission and meter business in January, in a deal which valued the business at £7.5bn.

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UK competition watchdog launches review of AI market

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CMA to look at underlying systems of artificial intelligence tools amid concerns over false information

The UK competition watchdog has fired a shot across the bows of companies racing to commercialise artificial intelligence technology, announcing a review of the sector as fears grow over the spread of misinformation and major disruption in the jobs market.

As pressure builds on global regulators to increase their scrutiny of the technology, the Competition and Markets Authority said it would look at the underlying systems, or foundation models, behind AI tools such as ChatGPT. The initial review, described by one legal expert as a “pre-warning” to the sector, will publish its findings in September.

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No 10 says UK ‘extremely attractive’ for business after Microsoft broadside

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Downing Street responds to stinging attack from US firm’s president over blocking of $69bn Activision deal

Downing Street has defended the UK as an “extremely attractive” place for tech startups after Microsoft’s president said Brexit Britain was worse for business than the EU, in a stinging attack on the UK’s decision to block a $69bn (£55bn) deal to take over Activision Blizzard.

Microsoft rounded on the Competition and Markets Authority (CMA) on Thursday after a surprise decision to block its planned takeover of the Call of Duty games developer, with its president, Brad Smith, describing it as the “darkest day in our four decades in Britain”.

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Major tech firms face hefty fines under new digital consumer bill

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Global companies like Google, Apple and Amazon could have to pay penalties of up to 10% of their global turnover as government gives competition watchdog more power

Major tech firms face the threat of multibillion-pound fines for breaching consumer protection rules under new legislation that will tackle issues including fake online reviews and subscriptions that are difficult to cancel.

The digital markets, competition and consumers bill will empower the UK’s competition watchdog to tackle the “excessive dominance” that a small number of tech firms hold over consumers and businesses.

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CMA to investigate Amazon’s $1.7bn takeover of Roomba firm

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Competition watchdog calls for evidence deal could give online retailer dominance in smart home market

Amazon’s $1.7bn takeover of the owner of the Roomba robotic vacuum cleaner is being examined by the UK’s competition watchdog.

The Competition and Markets Authority (CMA) has called for evidence on whether the deal could lead to “a substantial lessening of competition within any market or markets in the United Kingdom for goods or services” and so would require a full investigation.

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‘Greenwashing’ firms face steep new UK fines for misleading claims

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Legislation could see companies fined millions of pounds for making unproven environmental assertions to sell their products

When the hydrogen-powered Hyundai Nexo car was launched in the UK in the spring of 2019, it was described as “so beautifully clean” that it “purifies the air as it goes”.

Hyundai Motor UK claimed that if 10,000 of its cars were on the road, carbon emission reduction would be “equivalent to planting 60,000 trees”.

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Inflight wifi could be pricier if takeover of UK satellite firm goes ahead, says CMA

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Competition and Markets Authority says other operators may not be able to compete after merger of Inmarsat and Viasat

The $7.3bn (£5.4bn) takeover of the British satellite company Inmarsat by its US rival Viasat could result in higher-priced and lower-quality wifi for aeroplane passengers, according to the UK competition watchdog.

The Competition and Markets Authority said its investigation has identified concerns with the merger possibly leading to airlines being offered lower-quality products for onboard wifi and facing higher prices to deliver it.

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CMA investigates sport broadcasters over ‘cartel-like behaviour’

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Watchdog says it suspects possible breaches of competition law around purchase of freelance services

The competition watchdog is investigating possible cartel-like behaviour by sport broadcasters including BT Group, ITV, Sky and IMG Media, which includes Premier League Productions, around the purchase of freelance services.

The Competition and Markets Authority said it believes there are “reasonable grounds to suspect one or more breaches of competition law”.

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UK watchdog opens investigation into Amazon’s marketplace practices

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CMA looks into whether firm gives own sellers unfair advantage over third-party rivals

The UK competition watchdog has launched an investigation into whether Amazon has been giving its own brands and those using its logistics services unfair advantage over third-party rivals on its online marketplace.

The Competition and Markets Authority (CMA) said it opened an investigation on Tuesday amid concerns the US tech corporation’s practices on its UK marketplace may be anti-competitive and could result in a worse deal for customers.

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UK competition watchdog to look into pricing of Covid tests for travel

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CMA to investigate PCR tests market after concerns about vastly different prices being charged

The competition watchdog is to look into fees for the Covid-19 tests required for international travel after concerns about the vastly different prices being charged for them.

The Competition and Markets Authority will provide advice and intelligence on the market in PCR tests to the health secretary, Sajid Javid, to enable the government to act.

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Drug firm that hiked prices by 6,000% paid shareholders £400m

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Advanz Pharma and former private equity owners were fined £100m by markets watchdog

A pharmaceuticals firm that inflated thyroid drug prices by up to 6,000% over a decade paid out more than £400m to shareholders and directors during the same period.

London-based Advanz Pharma – and its former private equity owners HgCapital and Cinven – were fined a combined £100m by the Competition and Markets Authority (CMA) on Thursday.

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Lockdown refunds: why are Ryanair and BA being investigated?

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Airlines may have broken law by refusing refunds for flights customers could not legally take

British Airways and Ryanair are being officially investigated over whether they treated customers unfairly during the pandemic by failing to offer them flight refunds.

The Competition and Markets Authority (CMA) said it was looking to see if the two airlines had broken consumer law, and indicated it was on the side of consumers on this issue. It has opened enforcement cases into both companies.

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CMA to look into Facebook’s purchase of gif search engine

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Watchdog fears that social media giant’s takeover of Giphy may reduce competition

The UK’s competition regulator has opened an investigation into the proposed $400m (£320m) takeover of gif search engine Giphy by Facebook amid fears that the acquisition may reduce competition in the UK.

The Competition and Markets Authority (CMA) is inviting comments about Facebook’s purchase of a company that currently provides gif search across many of the social network’s competitors, including Twitter and the messaging service Signal.

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