CMA and US DoJ conduct coordinated raids targeting online price fixing
This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.
In April 2015, Olswang reported (see hereCMAwebsite) on a US antitrust case involving the first prosecution specifically targeting the e-commerce sector. The case concerned David Topkins, a former employee of an online art retailer, who conspired with competitors to fix the prices of certain posters sold through Amazon Marketplace using algorithm-based pricing software. In an interesting new development, the UK Competition and Markets Authority (“”) has stated on its that it carried out dawn raids on 1 December in a related investigation.
The CMA’s investigation is focussed on suspected anti-competitive arrangements relating to UK online sales of licensed sport and entertainment merchandise and other consumer products. The dawn raids took place at the headquarters of a UK company, Trod Limited (doing business as Buy 4 Less, Buy For Less, and Buy-For-Less-Online), as well as the domestic premises of one of its officers.
The CMA’s searches were co-ordinated with searches carried out by the West Midlands Police on behalf of the US Department of Justice (“DoJ”), in connection with its separate investigation regarding the sale of posters.
A DoJ press release (see here) announced that an indictment against Daniel Aston and his company, Trod Limited, was unsealed in US Federal Court on 3 December. According to the charges, Aston conspired to fix the price of certain posters sold online through Amazon Marketplace from as early as September 2013 to in or about January 2014. This mirrors the charges to which David Topkins pleaded guilty in April.
The CMA’s investigation is a civil investigation under the Competition Act 1998 and is separate from the US investigation, which is a criminal investigation and concerns both individuals and businesses.
