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| Version 1 | Version 2 |
|---|---|
| Price comparison sites to be probed by watchdog | Price comparison sites to be probed by watchdog |
| (about 1 hour later) | |
| The Competition and Markets Authority (CMA) plans to scrutinise the operation of price comparison websites, which enable consumers to compare products and services. | |
| The watchdog says its reviews into car insurance, energy and banking have highlighted how these tools can boost competition. | |
| It says it wants to see how they can be used to maximise consumer benefits. | It says it wants to see how they can be used to maximise consumer benefits. |
| But it will also consider concerns expressed about such services. | But it will also consider concerns expressed about such services. |
| Some people have raised concerns about certain issues, including whether consumers can trust the information on them. | Some people have raised concerns about certain issues, including whether consumers can trust the information on them. |
| The CMA will focus on four sectors - broadband, home insurance, credit cards and flights - and will examine whether arrangements between these providers and the suppliers that sell through them might restrict competition. | The CMA will focus on four sectors - broadband, home insurance, credit cards and flights - and will examine whether arrangements between these providers and the suppliers that sell through them might restrict competition. |
| Analysis: Brian Milligan, personal finance reporter | Analysis: Brian Milligan, personal finance reporter |
| The CMA study will be seen by many as an opportunity to revisit one of its most controversial decisions. Back in June, its inquiry into the energy market ruled that price comparison sites would no longer be under an obligation to show consumers the cheapest deals. | The CMA study will be seen by many as an opportunity to revisit one of its most controversial decisions. Back in June, its inquiry into the energy market ruled that price comparison sites would no longer be under an obligation to show consumers the cheapest deals. |
| In other words, such sites only need to show deals on which they are making a commission. | In other words, such sites only need to show deals on which they are making a commission. |
| That decision reversed a previous ruling by the energy regulator Ofgem, which said consumers should see all the deals on offer. MPs on the Energy Select Committee have already complained about the U-turn. | That decision reversed a previous ruling by the energy regulator Ofgem, which said consumers should see all the deals on offer. MPs on the Energy Select Committee have already complained about the U-turn. |
| While the CMA claims this new inquiry is completely separate, it says it will "see what issues it throws up". | While the CMA claims this new inquiry is completely separate, it says it will "see what issues it throws up". |
| It is now asking for evidence. There will certainly be no shortage of people willing to give it. | It is now asking for evidence. There will certainly be no shortage of people willing to give it. |
| These sites began operating about 10 years ago and include uSwitch, Compare the Market and Go Compare. | |
| There are some companies whose products do not appear on comparison websites and commercial arrangements vary between sites and providers. | There are some companies whose products do not appear on comparison websites and commercial arrangements vary between sites and providers. |
| Companies often pay a fee to a site for each new customer they gain. | Companies often pay a fee to a site for each new customer they gain. |
| Andrea Coscelli, CMA acting chief executive, said: "Digital comparison tools have played a big part in changing markets for the better, bringing new ways of doing things and forcing businesses to up their game. | Andrea Coscelli, CMA acting chief executive, said: "Digital comparison tools have played a big part in changing markets for the better, bringing new ways of doing things and forcing businesses to up their game. |
| "Consumers have benefited as choice and access to goods and services have grown." | "Consumers have benefited as choice and access to goods and services have grown." |
| She said they had been more successful in some sectors than others. | She said they had been more successful in some sectors than others. |
| The CMA said it wanted to understand why this was the case and whether more could be done to ensure consumers and businesses can benefit from them more widely. | The CMA said it wanted to understand why this was the case and whether more could be done to ensure consumers and businesses can benefit from them more widely. |
| It will examine four areas: | It will examine four areas: |
| The CMA must announce within six months whether it intends to refer the market for a more in-depth investigation and must publish its report within 12 months. | The CMA must announce within six months whether it intends to refer the market for a more in-depth investigation and must publish its report within 12 months. |