Fines totalling more than £2m have been handed out to JD Sports, Elite Sports and Rangers FC after the competition watchdog found they fixed the prices of replica football kits.
Bury-headquartered JD Sports, along with Elite Sports, broke the law by fixing retail prices of the Rangers-branded kits and other clothing items from September 2018 to July 2019, the Competition and Markets Authority (CMA) said.
The watchdog added that Rangers "also took part in the collusion", but only in fixing the price of specific adult home short-sleeved shirts from September to mid-November in 2018.
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The CMA added that all three colluded to stop JD Sports undercutting the retail price of the shirt on Elite’s Gers Online store.
Elite Sports has been fined £459,000, JD Sports £1.485m and Rangers £225,000.
The penalties include a settlement discount, reflecting resource savings to the CMA as a result of all three parties admitting to acting illegally and helping bring a swifter resolution to the investigation.
Elite Sports’ and JD Sports’ penalties also include a discount for coming forward with information about their participation in the illegal conduct and cooperating with the investigation under the CMA’s Leniency Programme.
Michael Grenfell, executive director of enforcement at the CMA, said: "at a time when many people are worried about the rising cost of living, it is important that football fans are able to benefit from competitively priced merchandise.
"Instead, Elite, JD Sports and, to some extent, Rangers, worked together to keep prices high.
"Today’s decision sends a clear message to football clubs and other businesses that illegal anti-competitive collusion will not be tolerated."
The regulator first began an investigation in December 2020.
Elite manufactured Rangers-branded clothing at the time and also sold it through its online store and later in physical stores in Glasgow and Belfast, while JD was the only UK-wide major retailer also selling the items at the time.
The CMA said its investigation found that the football club became concerned that, at the start of the 2018-19 season, JD was selling the Rangers replica top at a lower price than Elite.
This resulted in an agreement between the parties that JD would lift its price from £55 to £60 to bring it in line with Elite.
The CMA said it also found that Elite and JD, without involvement from Rangers, fixed the prices of Rangers-branded clothing, including training wear and replica kit, over a longer period.
A JD Sports statement said: "JD has co-operated fully with the CMA throughout this investigation, including taking swift steps to apply for leniency and agreeing to settle the investigation.
"As a consequence, the CMA has applied a substantial discount in determining its final penalty of £1.485m. In accordance with the CMA's standard terms of settlement, JD will not be appealing against this penalty.
"On 7 June 2022, JD announced that it would recognise a provision of approximately £2m on in its financial statements for the 52 weeks to 29 January 2022 representing the group's best estimate of the liability payable in respect of this matter, including associated legal costs.
"No directors or senior management of JD were involved in the offending conduct, which took place in 2018-2019.
JD has taken a number of steps to strengthen its competition compliance programme and is committed to ensuring that this is embedded into its daily operations.
"JD is committed to offering great value to its customers with a best-in-class multichannel retail experience."
Elite Sports and Rangers has also been contacted for comment.
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