Page 29 - BOSS Today Issue 39

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UK and EU regulators have been reminding industry that it must respect
competition rules, especially when it comes to calculating prices.

ompanies often Association - a total of £1.5 steel tanks, was approached must ensure that the software
Cquestion how prices million after finding they had to join a price fixing cartel. operates in accordance
should be calculated, and regularly and systematically While Balmoral refused to with competition rules.
the issue of under-cutting exchanged information join the group, it did disclose In August 2016, an online
by competitors is a source and discussed prices in the some commercially-sensitive retailer was fined £163,000
of constant irritation. It is context of negotiations information to its competitors. after agreeing with a
therefore a timely reminder with particular customers The CMA fined Balmoral competitor that they would
from the Competition and and, in some cases, agreed a £130,000. Balmoral appealed not undercut each other: both
Markets Authority (CMA) that common approach to pricing. to the Appeal Tribunal, which companies used automated
businesses and their Trade The CMA has stated that upheld the fine, stating that repricing software to give
Association can face fines, it takes illegal price sharing the judgment highlighted effect to the agreement.
criminal penalties, claims for information seriously and the fact that exchanging In an industry such as ours,
damages, and harm to their will investigate businesses in confidential information with where margins are tight and
reputation if they co-ordinate all industries. The regulator competitors is a breach of there are many participants,
their approach to pricing. encourages all companies competition law, and that businesses can easily fall foul of
As your Trade Association, to train their staff to know any business approached the complex competition rules.
we must be careful not what they can and can’t do, to become involved in anti- If you have any doubts about
to be a conduit of pricing including what they should competitive arrangements what is or is not allowed, speak
data (or other commercially not discuss with competitors. must immediately reject to us for advice and guidance.
sensitive information) For example, a case before the approach clearly
between our members. the Competition Appeal and unequivocally. n FOR FURTHER
One particular warning Tribunal demonstrates that Finally, the European INFORMATION CONTACT
was made to five model a business can be guilty of Commission has also issued NICOLA LANGLEY, HEAD
agencies and their trade breaching competition rules, a warning to companies OF BPIF LEGAL ON 01676
body, the Association of even if it refuses to collude on using computer algorithms 526062 OR EMAIL
Model Agents. The CMA fined prices. Balmoral Tanks, which to control the way they price NICOLA.LANGLEY@
the businesses - and the manufactures galvanised their goods. Such businesses BPIF.ORG.UK

April/May 2018 | BOSS TODAY 29