Price fixing probes dropped at JJB and Sports Direct
The UK Office of Fair Trading (OFT) has decided to close its long-running probe into alleged price fixing at UK-based sportswear retailers JJB Sports and Sports Direct.
The inquiry began in January 2009 when JJB approached the watchdog with concerns. While JJB’s co-operation with the OFT would have given it immunity from prosecution, Sports Direct could have faced a fine equal to as much as 10% of its turnover over a “suspected overarching agreement to dampen competition in the sports retail market”.
The OFT made a referral to the Serious Fraud Office (SFO), which launched an investigation into the possible cartel activity and searched both retailers’ offices in September 2009. But Sports Direct said on 12 August, 2011, that the OFT had “provisionally decided to close its investigation into alleged anti-competitive conduct in the sports retail sector”.
The exact nature of the alleged activities has never been disclosed but they relate to the period Chris Ronnie, the former chief executive of JJB Sports, was at the helm between 8 June 2007 and 25 March 2009. Mr Ronnie has always protested his innocence.
Keith Hellawell, the chairman of Sports Direct, said: “We welcome the announcement by the OFT. It is in line with Sports Direct’s long held views on the investigation.”
The OFT said it would make its final decision later this year.
