The CMA has provisionally found that Dar Lighting Limited has broken competition law by preventing retailers from offering discounts online
The Competition and Markets Authority (CMA) has issued a Statement of Objections to Dar Lighting Limited (‘Dar’), which supplies domestic lighting products.
The CMA’s provisional conclusion is that Dar restricted retailers’ freedom to set their own prices online between 2017 and 2019, requiring them to sell at – or above – a minimum price and so preventing them from offering discounts.
This kind of practice, known as resale price maintenance (RPM), is illegal and results in shoppers paying more for products.
This is the second time in recent years that the CMA has investigated a company in the lighting industry in relation to RPM.
Ann Pope, Senior Director of Antitrust at the CMA, said:
The CMA’s findings are provisional and no final decision has been made about whether there has been a breach of competition law. The CMA will now carefully consider representations from the company before reaching a final decision.
In recent years, the CMA has issued millions of pounds worth of fines to firms in the lighting and musical instrument sectors for preventing retailers from offering discounts online.
For businesses wanting to know more about RPM, the CMA has published guidance to help suppliers and retailers across all sectors, with information about what to do if they are, or may have been, involved in RPM or similar practices. Businesses can also watch the CMA’s short film that explains what RPM looks like in practice.
Notes to Editors