The investigation by the Serious Fraud Office (SFO) into allegations of price fixing between two of the UK’s major sports retailers could have serious implications for the commercial market.
The investigation follows a referral from the Office of Fair Trading (OFT). The OFT acted following an approached in January this year by retailer JJB. The company contacted the OFT with a view to immunity for material relating to “a suspected agreement or concerted practice to dampen competition in the sports retail market in the period from 8 June 2007 to 25 March 2009”. That period relates to that served by JJB’s former chief executive Christopher Ronnie who was fired after alleged gross misconduct.
In 2003, the OFT imposed a record fine of £19m on a number of sports retailers, including JJB, after the controller of Sports Direct, Mike Ashley, turned whistleblower. That investigation related to fixing the price of replica England and Manchester United shirts. The current investigation by the SFO is thought to centre on fixing the prices of tennis and squash balls.
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