Britain’s competition watchdog has announced it could force JD Sports to sell the Footasylum sportswear business https://www.theguardian.com/business/2020/feb/11/jd-sports-sell-footasylum-discounts it bought last year because consumers could lose out from the deal.
The Competition and Markets Authority (CMA) stated it had provisionally found that last April’s £90 million (US$116.6 million) takeover “substantially lessens competition nationally.” It stated shoppers could get fewer discounts, receive a lower quality of customer service, and enjoy less choice in stores and online.
JD Sports, Britain’s biggest sports retailer, hit back at the competition watchdog in a strongly worded statement, claiming the CMA’s findings were “fundamentally flawed.” It vowed to fight them.
It claimed the competition regulator failed to recognise the rapidly changing nature of the UK sports retail market, where a large number of retailers selling third-party brands compete, as well as other online players and the international brands selling directly to customers.
The JD Sports executive chairman, Peter Cowgill, said, “The CMA’s provisional decision is fundamentally flawed and demonstrates a complete misunderstanding of our market to an alarming extent, given its six-month review.
“The competitive landscape described by the CMA is one which neither I, nor any experienced sector analyst, would recognise. Just take a walk down any major UK high street or search for Nike or Adidas trainers on Google and you can see for yourself how competitive this marketplace really is.”
Full Content: The Guardian
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI