TLT and Linklaters advised Compare the Market in antitrust case

TLT and Linklaters advised Compare the Market in antitrust case

TLT and Linklaters acted as the legal advisors for a price comparison website Compare the Market which helped overturn a £17.9m fine from the Competition and Markets Authority (CMA).

CMA imposed the said multimillion pound fine for the company's use of the contracts that prevented home insurers listed on the website from offering better deals anywhere else.

The winning argument on behalf of Compare the Market was that the site's use of the best price clauses- referred to as wide most favoured nation clauses-did not have an adverse effect on competition and was merely a way to secure better home insurance deals for UK consumers.

CMA contested that the clauses could 'soften intra-brand competition' among home insurers and from other price comparison websites. However, this was rejected by CAT on the ground that the clauses had no harmful impact or even a potential harmful impact on the competitive structure of the market or that it adversely affected commissions paid by home insurers to price comparison sites or home insurance premiums paid by consumers. As a result, CAT overturned the original ruling and quashed the fine imposed by CMA. The CMA has until September 16 to apply for permission to appeal the CAT's judgment.

The case was the first time the use of price parity clauses by digital platforms had received full judicial scrutiny in a specialist competition court.

TLT's competition team was led by partner Miles Trower and supported by senior associates Richard Collie and Charlotte Mapston and associate Molly Efford, who advised the price comparison site on the investigation and subsequent CAT proceedings.

Linklaters' cross-practice team was led by antitrust and foreign investment group partner Nicole Kar and dispute resolution partner Tom Cassels alongside managing associate Haidee Barratt and associate Benjamin Sidbury.

Daniel Beard QC and Alison Berridge of Monckton Chambers represented Compare the Market before the CAT.

Oxera Consulting, an economics and finance consultancy, also advised Compare the Market on the case.