Antitrust Law Daily Wrap Up, ANTITRUST NEWS: U.K. antirust authority issues reminder of guidance on high-strength alcohol schemes, (Jan 19, 2016)

By Michael Menzhuber, J.D., LL.M.

Schemes aimed at reducing the consumption of high-strength alcohol sometimes include local authorities encouraging retailers to remove these products from sale for public health and safety reasons. The U.K. Competition and Markets Authority (CMA) issued a reminder to local authorities that such schemes must not breach competition law.

The CMA has written to the Local Government Association, local authorities, and other relevant bodies to remind them to consider the CMA’s guidance materials when designing and implementing schemes aimed at reducing the consumption of high-strength alcohol. These materials, which were originally issued last year, are designed to help authorities to create and implement schemes that do not breach competition law.

The CMA is also clarifying that it is likely to consider taking enforcement action where a scheme is suspected of: (1) acting as a cover for price-fixing between competing retailers; or (2) allowing retailers to share future pricing intentions. The CMA’s guidance states that retailers can make an independent decision to join a scheme and stop selling high-strength alcohol. However, retailers may not discuss this or agree to this in co-operation with other retailers, either directly or indirectly.

According to CMA Senior Director, Research, Intelligence and Advocacy, John Kirkpatrick, “We are reminding local authorities how competition law might apply to such schemes, so they can consider how to introduce schemes which achieve the desired results without breaking the law.”

News: Antitrust