Rangers Football Club has been accused by a competition watchdog of fixing the price of some shirts.
The Competition and Markets Authority (CMA) said yesterday it had provisionally found that Elite Sports, JD Sports and Rangers broke competition law by fixing the retail prices of certain Rangers-branded clothing products.
The provisional findings are:
*Elite Sports and JD Sports 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, but only to the extent of fixing the retail price of adult home short-sleeved replica shirts from September 2018 to at least mid-November 2018. All three parties allegedly colluded to stop JD Sports undercutting the retail price of the shirt on Elite's Gers Online store.
The CMA says that, at the time, Elite was the manufacturer of Rangers-branded clothing and also sold Rangers-branded products directly through Gers Online Store and later in shops in Glasgow and Belfast. The only UK-wide major retailer selling those products at the time was JD Sports.
The authority alleges that Rangers FC became concerned about the fact that, at the start of the 2018-19 football season, JD Sports was selling the Rangers replica top at a lower price than Elite, which was seen at the time as the club's "retail partner". This resulted in an understanding between the three parties that JD Sports would increase its retail price of the Rangers adult short-sleeved home replica shirt by nearly 10%, from £55 to £60, to bring it in line with the prices being charged by Elite on Gers Online.
The CMA is also concerned that Elite and JD Sports - without involvement from Rangers - colluded to fix the retail prices of Rangers-branded clothing, including training wear and replica kit, over a longer period. This included aligning the level and timing of discounts towards the end of the football season in 2019, to avoid competition between them and protect their profit margins at the expense of fans.
The CMA says Elite and JD Sports applied for leniency during the investigation and confessed to cartel activity.
Miichael Grenfell, executive director of enforcement at the authority, 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.
Rangers Football Club said yesterday that it had received a statement of objections (SO) from the CMA, which sets out the authority's preliminary findings.
It adds: "The SO represents the CMA's provisional view only. It is not a finding that Rangers has broken the law and does not mean that the CMA will issue a final decision or impose a fine on Rangers.
"Rangers is committed to operating its business in full compliance with all laws, including competition law, and treats this matter very seriously. As such, Rangers will review in detail the CMA's preliminary findings and will be submitting its response to the CMA in due course. Rangers notes that it has co-operated with the CMA since the investigation was initiated and will continue to do so."
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