The UK’s competition watchdog, the Competition and Markets Authority, will not launch an investigation into allegations of anti-competitive behaviour lodged against the sugar arm of Associated British Foods by The Real Good Food Co.
A spokesperson for the CMA told just-food both parties were informed of the decision in writing yesterday (23 September).
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“We decided against it being something we would pursue, in line with the earlier decision by Trading Standards,” the spokesperson said.
The CMA declined to detail the rationale for the decision, insisting the sensitive information contained in anti-trust cases meant it was inappropriate to do so.
However, Real Good Food suggested a lack of resources rather than the merits of the case had forced the CMA’s hand.
“The CMA felt that conducting a full investigation would, taking into account the complexity of the issues involved, require significant economic and legal resources and, on the basis of previous similar investigations, take at least two years to conclude,” the company said.
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By GlobalData“The CMA acknowledged that the decision not to prioritise does not mean that Napier Brown’s case is not valid, merely that the CMA does not see it as having sufficient priority within its portfolio of cases at present and makes the point that it does not prevent it from deciding to open an investigation in the future.”
Real Good Food had claimed ABF’s British Sugar “imposed” an “anti-competitive” sugar price on its wholesale sugar arm Napier Brown, hitting profits at the unit. The company had initially lodged its complaint with the Office of Fair Trading prior to its amalgamation into the CMA.
For its part, British Sugar “welcomed” the decision. “British Sugar was confident that it had acted appropriately at all times. British Sugar is pleased that the CMA has elected not to pursue Napier Brown’s complaint in line with the previous conclusion of the OFT,” the company said.
