By admin 
Leicester City Football Club was fined £880,000 by the UK’s competition body, the Competition and Markets body (CMA), for violating anti-competitive regulations with JD Sports.
The sanction was imposed following an examination by the CMA into the two companies’ collaboration for the 2018/2019 season. The club and JD Sports agreed that JD Sports would not sell Leicester City-branded merchandise online until the end of the 2020/2021 season and would continue to charge delivery for Leicester City products. The CMA discovered that this had the potential to result in fans paying more than they should.
In response, Michael Grenfell, Executive Director of Enforcement at the CMA, stated, “Strong and unhindered competition between retailers is critical to consumers’ ability to shop around for the best deals.” In this instance, we have tentatively determined that Leicester City FC and JD Sports conspired to share out markets and control pricing, potentially causing supporters to pay more than they would have otherwise. Both parties have now confirmed their involvement, allowing us to wrap up the investigation quickly. The penalties agreed to by Leicester City Football Club and its parent firms sends a strong message to them and other businesses that anti-competitive collusion will not be allowed.”
Unlike Leicester City FC, who was harshly penalized in the form of a fine, JD Sports escaped a similar fate. This was owing to JD Sports submitting their own case to the CMA, revealing their own involvement and offering leniency in exchange for assistance with the inquiry. While JD Sports was given a pass, they did take steps to strengthen their corporate training and procedures in order to comply with UK competition law.
More here: Watchdog Launches New Investigation Into Leicester City & JD Sports
The £880,000 punishment imposed on Leicester City clearly reflects the gravity of the situation and serves as evidence that the CMA does not treat any infringement of competition law lightly.
This is reinforced by the fines imposed on JD Sports’ previous Executive Chairman and Chief Executive, Peter Cowgill, who resigned in May of last year. Following that, the group reviewed its governance procedures and regulations to ensure that its activities were competitively fair.
In light of this, it is critical for all firms, including Leicester City and JD Sports, to maintain strict compliance. It is also worth mentioning that there is a light at the end of the tunnel in this cautionary tale, as Leicester City fans can now be certain that the price of their imitation products will not be artificially inflated and manipulated.