The Competition Commission
An Example of How it Works
Why the C.C. got involved:
A relevant merger situation has been created in that enterprises carried on by Sports Direct International plc have ceased to be different from ventures carried on by JJB Sports plc; and as a result, the conditions specified in section 23(3) of the Act will prevail, with respect to the supply of goods in the UK by national sports retailers; and the creation of that situation has resulted or may be expected to result in a substantial lessening of competition within markets in the UK for goods or services, including the supply.
However these similarities in ventures could’ve been due to the firms responding to changes in the market, such as major sporting events and not working together to reduce competition.
Effects on consumer welfare:
It was found that the closure of some Sports Direct stores following the transfers have adversely affected consumer welfare, due to longer travel times, but only very slightly.
Outcome:
On the basis of all the evidence and analysis, it was concluded that the acquisition of 31 stores by Sports Direct from JJB has not resulted, and may not be expected to result, in a decrease in competition in any market in the
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