OFT to review domestic electrical goods monopoly order and undertakings and consider market study on aftermarkets

The OFT has launched a review into the market for domestic electrical goods (DEGs). The OFT has identified a number of changes in relation to the supply of DEGs since the Monopolies and Merger Commission's (now the Competition Commission) reports in 1997, such as the entry of grocery retailers to the market, the expansion of online retailing, the coming into force of the Competition Act 1998 (which addressed resale price maintenance), and technological developments. The OFT is seeking views on these changes and whether they render inappropriate the remedies which followed the Monopolies and Merger Commission reports (which are contained within the Restriction on Agreements and Conduct (Specified Domestic Electrical Goods) Order 1998 (the Order)).  

Alongside the review of the remedies imposed by the Order, the OFT is considering the possibility of a market study into the aftermarkets for white and brown DEGs, focusing on service, repair and extended warranties, after receiving concerns from business and consumer organisations.

The period for comments on both the review of the remedies imposed by the Order and the possible market study is open until 12 January 2011.

25 November 2010