Hasbro U.K. Ltd / Argos Ltd / Littlewoods Ltd

No. CA98/8/2003

Agreements between Hasbro U.K. Ltd, Argos Ltd and Littlewoods Ltd fixing the price of Hasbro toys and games

A decision of 19 February 2003 in this case was appealed to the Competition Appeal Tribunal on 7 April 2003. On 30 July 2003, the Competition Appeal Tribunal remitted the case to the OFT to permit the OFT to put witness evidence to the appellants. On 2 December the OFT issues this decision in place of the earlier decision. On 14 December 2004 the Competition Appeal Tribunal upheld the OFT's decision on liability. For further details see Competition Appeal Tribunal website.

2 December 2003

The Office of Fair Trading (OFT) has concluded that Hasbro U.K. Ltd (Hasbro), one of the largest toy and games suppliers in the UK, Argos Ltd (Argos) and Littlewoods Ltd (Littlewoods) have entered into price-fixing agreements that infringe section 2 (the Chapter I prohibition) of the Competition Act 1998 (the Act).

Hasbro, Argos and Littlewoods have entered into an overall agreement and/or concerted practice to fix the price of certain Hasbro toys and games. This overall agreement included two bilateral price-fixing agreements and/or concerted practices which in themselves constitute infringements: one between Hasbro and Argos and the other between Hasbro and Littlewoods. The agreements were entered into in 1999 and infringed the Chapter I prohibition from 1 March 2000 (when the prohibition came into force). The agreements came to an end no earlier than 15 May 2001 and no later than 14 September 2001. The OFT takes the view that these agreements may have affected trade within the UK and had, as their object and effect, the prevention, restriction or distortion of competition in the supply of certain Hasbro toys and games in the UK and are in breach of the Chapter I prohibition.

The OFT considers that agreements between undertakings that fix prices are among the most serious infringements caught under the Chapter I prohibition. It is therefore imposing financial penalties on Hasbro, Argos and Littlewoods. However, Hasbro has been granted 100 per cent leniency since it was the first to provide the Director General of Fair Trading (as he then was) with evidence of the infringing agreements before the investigation commenced. Hasbro also co-operated fully. Therefore its penalty will be reduced to nil.

This decision replaces the then Director General of Fair Trading's decision of 19 February 2003 (No. CA98/2/2003).

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