JD Sports Fined for Breaching CMA Order During Footasylum Merger Investigation
Company: JD Sports Fashion plc
Summary
In February 2022, the Competition and Markets Authority fined JD Sports and Footasylum almost £5 million in total for breaching an interim order during the CMA's investigation of JD Sports' acquisition of Footasylum. The CMA said senior executives exchanged commercially sensitive information during meetings in July and August 2021 and that the companies failed to notify the regulator appropriately. The CMA also found their compliance safeguards were severely deficient. The penalties arose from failures to comply with an interim order designed to keep the businesses separate while the merger investigation was ongoing. The CMA ultimately required JD Sports to sell Footasylum after concluding the acquisition would substantially reduce competition. Sources: Competition and Markets Authority — penalty announcement https://www.gov.uk/government/news/sports-retailers-fined-almost-5m-for-breaching-cma-order Competition and Markets Authority — merger case https://www.gov.uk/cma-cases/jd-sports-fashion-plc-footasylum-plc-merger-inquiry