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JD Sports Fashion PLC on Tuesday was fined £1.5 million by the UK Competition & Markets Authority for anticompetitive behaviour.
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 £459,000. Rangers FC - a Glasgow, Scotland football club - was fined £225,000.
In September 2018 Elite Sports was the manufacturer of Rangers-branded clothing. The only other major retailer selling those products at the time was JD Sports. According to the CMA, Rangers became concerned that ‘JD Sports was selling the Rangers replica top at a lower price than Elite, which was seen at the time as the clubs retail partner.’
JD Sports then agreed to raise its price from £55 to £60 to prevent it undercutting Elite Sports. The CMA then found that Elite Sports and JD Sports, without the involvement of Rangers, colluded to fix the retail prices of Rangers-branded clothing over a long period. Rangers's fine was lower to reflect its lack of involvement in this later stage.
Elite Sports and JD Sports' penalties included a discount for coming forward with information about their participation.
In an announcement issued Tuesday, JD Sports said it has ‘co-operated fully with the CMA’ throughout the investigation and added that it would not be appealing against the penalty.
The company added that no directors or senior management of JD Sports were involved in the offending conduct. It has taken a number of steps to ‘strengthen its competition compliance programme’ and is committed to ensuring that this is embedded into its daily operations.
Michael Grenfell, executive director of Enforcement at the CMA, said: ‘At a time when many people are worried about the rising cost of living, it is important that football fans are able to benefit from competitively priced merchandise. Instead, Elite, JD Sports and, to some extent, Rangers, worked together to keep prices high. Todays decision sends a clear message to football clubs and other businesses that illegal anti-competitive collusion will not be tolerated.’
Shares in JD Sports were trading 2.6% lower at 100.15 pence each in London on Tuesday morning.
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