JD Sports, Elite and Rangers fixed prices of replica shirts, says CMA

theguardian.com:

JD Sports and Elite Sports, along with Rangers Football Club, broke competition law by fixing the prices of some Rangers-branded clothing to keep them high at the expense of fans, Britain’s competition watchdog has found.

The Competition and Markets Authority (CMA), which has been investigating the matter since December 2020, said sports retailers Elite and JD fixed the retail prices of a number of Rangers-branded replica kits and other clothing products from September 2018 until at least July 2019.

Rangers FC also took part in the alleged collusion, by fixing the retail price of adult home short-sleeved replica shirts from September 2018 until at least mid-November of that year. All three companies allegedly colluded to stop JD undercutting the retail price of the shirt on Elite’s Gers Online store, the watchdog said.

If its provisional findings are confirmed, the companies can expect to face fines.

Michael Grenfell, the executive director of enforcement at the CMA, said: “We don’t hesitate to take action when we have concerns that companies may be working together to keep costs up.

“Football fans are well known for their loyalty towards their teams. We are concerned that, in this case, Elite, JD Sports and, to some extent, Rangers, may have colluded to keep prices high, so that the two retailers could pocket more money for themselves at the expense of fans.”

JD said it would review the CMA’s findings with its advisers, and will make a provision of £2m in its results for the year to 29 January, reflecting its estimate of the potential penalty, including legal costs.

At the time, Elite was the manufacturer of Rangers-branded clothing and also sold the products directly through its Gers Online store and later in physical shops