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Press release: CMA challenges lighting company’s pricing restrictions
The CMA has provisionally found that a lighting supplier has broken competition law by restricting retailers’ freedom to discount online.
The Competition and Markets Authority (CMA) has issued a statement of objections to Poole Lighting Limited (Poole), which supplies light fittings to national and independent retailers.
It is alleged the company stopped retailers from setting their own prices online and forced them to sell at – or above – a minimum price. This would be a form of ‘resale price maintenance’, which breaks competition law.
The CMA’s findings are provisional and no final conclusion has been reached regarding whether there has been a breach of competition law.
Ann Pope, CMA Senior Director, Antitrust, said:
With more and more retail activity moving online, making sure competition works well in this channel is a priority for the CMA. That happens when retailers are free to set their own prices to attract customers using the internet to look for the best deal.
So we take allegations of online resale price maintenance seriously because it can keep those prices high and limit choice for consumers.
We will now carefully consider representations from the company before reaching a final decision.
The products being investigated by the CMA are the Saxby and Endon brands of domestic light fittings, including lamp shades, table lamps and wall light fittings. The size of the wider UK light fittings sector is estimated at £1.22 billion annually, including domestic and commercial sales.
Notes for editors
- The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
- The Chapter I prohibition of the Competition Act 1998 covers anti-competitive agreements, concerted practices and decisions by associations of undertakings which have as their object or effect the prevention, restriction or distortion of competition within the UK or a part of it and which may affect trade within the UK or a part of it. Similarly, Article 101 of the Treaty on the Functioning of the European Union (TFEU) prohibits such anti-competitive agreements, concerted practices and decisions by associations of undertakings which may affect trade between EU member states.
- The CMA has produced a series of animated videos explaining the main principles of competition law and how they affect small businesses.
- The CMA fined 2 other companies for online resale price maintenance in May 2016: one in the bathroom fittings sector and one in the commercial refrigeration sector.
- The estimated size of the wider UK light fittings sector is £1.22 billion annually according to AMA Research Limited’s ‘Lighting Market Report – UK 2016-2020 Analysis’, 13th edition, July 2016.
- Any business found to have infringed the Competition Act 1998 could be fined up to 10% of its annual worldwide group turnover. In calculating financial penalties, the CMA takes into account a number of factors including seriousness of the infringement(s), turnover in the relevant market and any mitigating and/or aggravating factors.
- The statement of objections is addressed to the following companies which the CMA provisionally considers were directly involved in the alleged infringements and/or are liable as parent companies of the companies directly involved in the alleged infringements:
- Saxby brand: Poole Lighting Limited, Saxby Lighting Limited and their parent company, The National Lighting Company Limited.
- Endon brand: Poole Lighting Limited, Endon Lighting Limited and their parent company, The National Lighting Company Limited.
- The CMA has not addressed the statement of objections to any retailer. This is because the CMA has applied Rule 5(3) of its Competition Act 1998 Rules, according to which it may address its proposed infringement decision to fewer than all the persons who were party to the relevant agreements.
- A statement of objections gives parties notice of a proposed infringement decision under the Competition Act 1998. It is a provisional decision only and does not necessarily lead to an infringement decision. Parties have the opportunity to make written and oral representations on the matters set out in the statement of objections. Any such representations will be considered by the CMA before any final decision is made.
- The statement of objections will not be published. In accordance with the guidance Competition Act 1998: Guidance on the CMA’s investigation procedures in Competition Act 1998 cases (CMA8), any person who is in a position materially to assist the CMA in testing its factual, legal or economic arguments may request a non-confidential version of the statement of objections by contacting the CMA.
- The CMA currently has 12 ongoing cases open under the Competition Act 1998.
- For more information on the CMA see our homepage or follow us on Twitter @CMAgovuk, Facebook, Flickr and LinkedIn. Sign up to our email alerts to receive updates on Competition Act 1998 and civil cartels cases.
- Information on this investigation can be found on the case page.
- Enquiries should be directed to Rebecca Cassar (rebecca.cassar@cma.gsi.gov.uk, 020 3738 6633).
Press release: UK firms secure lucrative ‘green’ construction contract with government support
In a significant collaboration between UK firms Carillion and Zaha Hadid Architects, and leading UAE-based environmental management company Bee’ah, support from UK Export Finance (UKEF) has helped secure a contract to build Bee’ah’s new headquarters in Sharjah, UAE, worth tens of millions of pounds.
Bee’ah’s headquarters was designed by the late Dame Zaha Hadid, the world-renowned British architect. It will be built by Carillion and will be the first building of its kind in the city of Sharjah to be powered entirely by renewable and recoverable energy sources, whilst utilising recycled materials in its construction.
International Trade Secretary Dr Liam Fox said:
Our support to help Carillion secure this contract shows the UK’s global leadership in sustainable engineering, and our pioneering expertise in developing smart cities and green buildings for the future. The UAE is a key partner in the region and 5,000 UK companies work in there. Through UKEF, the government is ensuring that British firms can be the first choice to support the country’s ambitions.
The headquarters will be powered by low- and zero-carbon sources, including solar power and waste-to-energy and will be one of the most advanced buildings in the region. Using British architectural and construction expertise, the design has been developed to use natural light and temperature management systems where possible.
Zafar Khan, Group Finance Director, Carillion, said:
This contract cements Carillion’s position as a market-leader in the Middle East, as well as our credentials in sustainable construction. Our ability to offer our customers in the region the support of UK Export Finance is an invaluable asset, making our bids more attractive and helping us win contracts in a competitive global marketplace.
HE Salim bin Mohamed Al Owais, Chairman of Bee’ah, said:
As pioneers in environmental sustainability in the Middle East, Bee’ah is proud of our international alliances and the partnerships we have forged to advance our ambitious strategic goals. This agreement is a significant moment in the history of the region. It demonstrates Bee’ah’s dedication and commitment to delivering on promises to the people of the UAE by providing tangible solutions to the greatest environmental challenges that face modern civilisation.
The headquarters is expected to be operational by the end of 2018, moving towards the major milestone of being powered by 100% renewable energy by 2021.
The financing deal provides for both the construction and design of Bee’ah’s new headquarters; UKEF will support the Carillion and Zaha Hadid contracts under its Direct Lending Facility. HSBC Bank Middle East Ltd has acted as arranger on the transaction, and HSBC Bank Plc is the agent.
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The construction phase of the project is expected to last 30 months.
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The Department for International Trade is responsible for promoting British trade across the world and ensuring the UK takes advantage of the huge opportunities open to us.
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UK Export Finance is the UK’s export credit agency and a government department, working alongside the Department for International Trade as an integral part of its strategy and operations.
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It exists to ensure that no viable UK export should fail for want of finance or insurance from the private market. It provides finance and insurance to help exporters win, fulfil and ensure they get paid for export contracts.
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Sectors in which UKEF has supported exports include: aerospace, construction, oil and gas, mining and metals, petrochemicals, telecommunications, and transport.
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UKEF has a regional network of 24 export finance managers supporting export businesses.
- UKEF supports exporters with a range of products that include:
- Bond insurance policy
- Bond support scheme
- Buyer & supplier credit financing facility
- Direct lending facility
- Export insurance policy
- Export refinancing facility
- Export working capital scheme
- Letter of credit guarantee scheme
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Find the latest information on UKEF’s country cover positions
- Bee’ah, headquartered in the Emirate of Sharjah, is an integrated environmental and waste management company, founded in 2007, through an Emiri decree by His Highness Sheikh Dr Sultan Bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, as a public private partnership (PPP) with the Sharjah City Municipality.
Statement to Parliament: Commercial spaceflight
We intend to publish a draft spaceflight bill later this month, dedicated to commercial spaceflight in the UK. This legislation will be fundamental to enabling small-satellite launches and sub-orbital flights from the UK, ensuring the UK is well placed to take advantage of a growing global market. The government’s intention is to introduce this Bill formally early in the next session, following a period of scrutiny and engagement with industry and other interest groups.
The space sector is vital to the future of the UK economy, with a strong record of creating high-value jobs and generating wealth across the country. To help the creation of the space launch market in the UK, the UK Space Agency is inviting commercial space consortia to apply for grant funding to take the action that will make our ambitions a reality.
Together, the proposed legislation and grant funding announced today will have the potential to enable commercial spaceflight from a UK spaceport by 2020.
read morePress release: Training for the Energy Sector discussed during college visit
The minister will be updated by Dafydd Evans, CEO Grŵp Llandrillo Menai and Dr Ian Rees, Grŵp Executive Director Business Development on how the college is progressing in its mission to ensure local people are equipped with the skills to benefit from opportunities in the Energy Sector.
The update will be followed by a tour of the college’s Construction and Energy Centres and an energy sector round table involving Bangor University, Snowdonia Enterprise Zone and Orthios Eco Parks before the minister moves on to the Wylfa Newydd Site.
A myriad of opportunities are expected to come to Anglesey in wake of the anticipated Wylfa Newydd Nuclear Power station and other energy based projects, such as wave power and a biomass plant at the former Anglesey Aluminium site.
A likely topic of conversation during the visit is the work already undertaken with Horizon Nuclear Power.
Just this week in a launch event at Coleg Menai (06/02/2017) Horizon Nuclear Power announced that they would recruit another 12 Apprentices to join their training scheme, bringing the number of Horizon Nuclear Apprentices already in training to 22.
The college has also submitted a planning application for the development of its Llangefni campus that would see college’s Engineering provision relocated to a new £15m Engineering Training Centre in Llangefni.
We look forward to a constructive meeting this morning at Llangefni with Guto. It essential we update our representatives in Westminster on the work that’s being done here in North West Wales to develop Engineering and other Science, Technology, Engineering and Maths skills. With Brexit looming large it’s essential that we have these talks now so that we can prepare for the future.
Guto Bebb, the Parliamentary Under Secretary of State for Wales, said:
I’m delighted to visit Coleg Menai and Wylfa today to see the innovative technology that is set to make a positive impact to Anglesey’s economy. It’s important to hear from Welsh institutions and businesses about the issues and opportunities that they face following Brexit, and continue the conversations that we’ve been holding throughout the summer.
The UK’s Industrial Strategy provides a joined up approach to policy, aiming to deliver a highly skilled and competitive economy that benefits people right across the country. Coleg Menai is a fantastic example of an institution in the North West of Wales working to ensure that young people have the essential employability skills for the global market and to work in an industry that is being developed within their local area.
Greg Evans, Safety & Generation Director at Horizon said:
read moreColeg Menai and Horizon have already shown how we will work together through paving the way for the new Engineering Training Centre and providing Horizon apprenticeship opportunities for local young people. We will continue to move forward in partnership, with the active support of both the UK and Welsh Governments, to deliver the huge benefits Wylfa Newydd will bring for Anglesey and North Wales for many decades.