Compare the Market Accused of Insurer Pricing Stitch-Up

By Gary Cutlack on at

That web site with the adverts that make everyone over the age of 40 want to take a bath with their TV sets is in trouble with the UK's competition watchdog, which is accusing it of doing deals with insurers that guarantee it's the cheapest place to take out insurance contracts.

The Competition and Markets Authority is investigating whether or not Compare the Market uses what's known as "most favoured nation" clauses in its contract with suppliers. This shady practice is used to stop suppliers offering similar products for less money elsewhere, meaning that if a company wants to be listed on Compare the Market it has to agree not to sell its insurance for less elsewhere. Which is a sort of monopoly-abusing position to take that might drive up prices for everyone.

The CMA is still in the evidence gathering phase, with no conclusions or judgements handed out yet. [CMA via Standard]