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As part of an investigation which began in September 2021, the Competition and Markets Authority (CMA) has today issued a statement of objections, which sets out its provisional assessment of the case. This follows admissions by Leicester City FC and JD Sports that they broke competition law by entering into an arrangement which limited competition in the sales of Leicester City-branded clothing, including replica kit, in the UK.

Leicester City FC and its parent companies have, under the settlement procedure, admitted Leicester City FCs participation in the alleged arrangement. They have agreed to pay a fine under the CMAs settlement policy of a maximum 880k. This includes a settlement discount from the fine that would have otherwise been imposed reflecting resource savings to the CMA as a result of Leicester City FC admitting to acting illegally and helping bring a swifter resolution to the CMAs investigation.

Although the findings are addressed to Leicester City FCs parent companies, as well as to the company itself, this is because of the standard legal rules that parent companies have joint and several liability for competition law infringements; the CMA is not suggesting, and has no reason to believe, that the parent companies themselves were directly involved in the unlawful conduct.

JD Sports reported the illegal conduct and admitted its participation in the alleged conduct by way of a leniency application. It will not receive a fine provided that it continues to co-operate and to comply with the other conditions of the CMAs leniency policy.

• The case relates to the following arrangement between Leicester City FC and JD Sports:
• In August 2018, that JD Sports would stop selling Leicester City-branded clothing online for the 2018/19 season
• In January 2019, that JD Sports would not undercut Leicester City in terms of online sales for the 2019/20 season by applying a delivery charge to all orders of Leicester City-branded clothing disapplying its company-wide promotional offer of free online delivery for all orders over 70
• By July 2020, that JD Sports would continue to apply delivery charges to online orders of Leicester City-branded clothing for the 2020/21 season as well. This continued until at least 26 January 2021

Michael Grenfell, Executive Director of Enforcement at the CMA, said:

Strong and unimpeded competition between retailers is essential to consumers ability to shop around for the best deals.

Football fans are well-known for their loyalty towards their teams. In this case we have provisionally found that Leicester City FC and JD Sports colluded to share out markets and fix prices - with the result that fans may have ended up paying more than they would otherwise have done. Both parties have now admitted their involvement, allowing us to bring the investigation to a swift conclusion.

The fine that Leicester City FC and its parent companies have agreed to pay sends a clear message to them and other businesses that anti-competitive collusion will not be tolerated.

More information can be found on the case page.

Notes to editors:

• For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.
• The parties to this case are JD Sports Fashion plc, Leicester City Football Club Limited, King Power International Co Limited and V&A Holding Co Limited:
• The CMA has provisionally found that JD Sports Fashion plc and Leicester City Football Club Limited were directly involved in the conduct.
• King Power International Co Limited and V&A Holding Co Limited are also held liable as Leicester City Football Club Limiteds immediate and ultimate parent companies respectively. This is on the basis of the decisive influence exercised by these entities in respect of Leicester City Football Club Limited as opposed to any evidence that they had any knowledge of or involvement in the arrangements.
• The Chapter I prohibition in the Competition Act 1998 prohibits agreements and concerted practices between businesses which have as their object or effect the prevention, restriction or distortion of competition within the UK.
• A statement of objections gives parties notice of a proposed infringement decision under the Competition Act 1998. It is a provisional decision only and does not necessarily lead to an infringement decision. Parties that are cooperating with the CMA under its leniency programme as well as parties that have entered into a settlement agreement with the CMA are not expected to make substantial representations.
• The statement of objections will not be published.
• A party under investigation by the CMA may settle the investigation if it is prepared to admit that it has breached competition law and is willing to pay a financial penalty and agree to a streamlined administrative procedure for the remainder of the investigation. In return, the CMA imposes a reduced penalty on the business where settlement would achieve clear efficiencies, resulting in the earlier adoption of any infringement decision and resource savings. LCFC and its parent companies settled the case with the CMA and therefore, in calculating the above fine, a discount of 20% was applied to the penalty that would otherwise have been imposed.
• Under the CMAs leniency policy, a business that has been involved in a cartel may be granted immunity from penalties or a significant reduction in penalty in return for reporting cartel activity and assisting the CMA with its investigation. Individuals involved in cartel activity may also in certain defined circumstances be granted immunity from criminal prosecution for the cartel offence under the Enterprise Act 2002 and from competition disqualification proceedings. The CMA also operates a rewards policy under which it may pay a financial reward of up to 250,000 in return for information which helps it to identify and take action against cartels. For more information on the CMAs leniency and informant reward policies, go to leniency and rewards.
• The CMA has today issued a Statement of Objections. A final decision will follow, and the final total of any fine to be paid will be d
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