Global Competition Review
interviewed McGuireWoods London partner
Matthew Hall for a
Nov. 2 story
about home insurance price comparison website ComparetheMarket contracts
that, UK enforcers say, stifle home insurance market competition and
deprive consumers of better deals.
The Competition Market Authority recently accused ComparetheMarket of
inserting “most-favored nation” clauses into its contracts with
participating home insurers that prevent them from offering lower prices
elsewhere online. During the CMA investigation, ComparetheMarket notified
home insurers that it would not enforce the MFN clauses but left them in
their contracts. The CMA said it remains concerned that the clauses are
still in force.
The use of MFN clauses in online sales and subsequent investigations into
them have long been among the most robustly discussed topics in EU
competition law, so online sellers who have used such clauses know the
risk, Hall told GCR.
In noting that ComparetheMarket told participating insurers that it won’t
enforce MFN clauses, Hall said that “competition law applies not only to
the strict wording of contractual clauses but how relations operate in