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The CMA has published its final report as part of the private motor insurance market investigation. The CMA found that some price parity clauses in contracts between price comparison websites and motor insurers prohibit insurers from making their products available more cheaply on other online platforms, with the effect of restricting competition and leading to higher car insurance premiums overall.
The CMA also found that the limited provision of information in the sale of motor insurance add-on products to consumers makes it difficult for consumers to compare the costs and benefits of these products, with the sale of no-claims bonus protection giving rise to particular concerns.
As a result of these findings the CMA is putting in place a number of remedies, including a ban on agreements between price comparison websites and insurers which stop insurers from making their products available more cheaply on other online platforms, better information for consumers on the costs and benefits of no-claims bonus protection and a recommendation that the Financial Conduct Authority looks at how insurers inform consumers about other products sold as add-ons to car insurance policies.
The CMA also found that cost separation between the party which typically manages the provision of post-accident services to claimants who are not at fault in an accident (eg the claimant’s insurer or a claims management company) and the party which pays for those services (ie the insurer of the at-fault driver), in combination with various practices in the industry, cause inefficiencies in the supply chain, leading to higher car insurance premiums. However, the CMA has concluded that there is no effective and proportionate remedy for this issue.
The European Commission has opened an in-depth investigation to assess whether the proposed acquisition of joint control over De Vilver Media by Liberty Global, Corelio and Waterman & Waterman, is in the line with the EU Merger Regulation.
Liberty Global controls the Flemish cable operator Telenet, while De Vijver owns the Dutch-language TV-channels "Vier" and "Vijf". The Commission is therefore concerned that the proposed transaction may lead to competitors of these companies being shut out from the TV sector in Flanders.
This article was written by Paul Stone.
For more information please contact Paul on +44 (0)20 7203 5110 or firstname.lastname@example.org.