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OFT states Dixons is not in breach of the Competition Act

United Kingdom
30/04/2000
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On 10th April 2000, the OFT issued a statement stating that the exclusive supply agreements Dixons have with Packard Bell and Compaq do not appear to infringe the Competition Act.

The OFT were acting on a complaint by John Lewis that Dixons had been acting in an anti-competitive manner.

The OFT stated that although vertical agreements between manufacturers and retailers are excluded from the prohibition on restrictive agreements in the new competition law, the Director-General can claw back the exclusion where he considers the agreement would be anti-competitive. In fact vertical agreements are commonplace in business and do not generally give rise to competition concerns.

In October 1999, the OFT undertook a review of PC retailing and concluded that it is a competitive market. In addition, Dixons' market share did not make it a dominant player. The OFT indicated it is seeking further information from John Lewis on their complaint.

(OFT Press Release No 18/00)

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