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UK Competition Commission to remove regulations on electrical goods retail
The Competition Commission (CC) has today confirmed that it will now remove the Domestic Electrical Goods Order. This follows the CC’s provisional decision made in December 2011.This Order was introduced in 1998, and prevented suppliers of goods such as televisions and washing machines from recommending resale prices, or making agreements that restrict the resale prices of wholesalers and retailers, and from restricting or withholding supply from particular retailers.
In its final decision today, the CC has decided that a number of changes since the Order was introduced have significantly increased competition in the market and removed the need for the safeguards provided by the Order. The CC also considers that the Competition Act 1998 now provides an effective mechanism to address attempts to fix prices or restrict supply unfairly.
Frontier (Europe) advised a leading electrical goods retailer on the review of the Order. For more information, please contact Paul Cullum at p.cullum@frontier-economics.com or call +44 (0)20 7031 7000.
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