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OFT issues statement of objections against Oakley and House of Fraser

216/05    16 November 2005

The OFT has provisionally found that Oakley and House of Fraser entered into an agreement and/or concerted practice to fix the minimum prices of Oakley sunglasses in breach of the Chapter I prohibition of the Competition Act 1998 (see note 2).

The OFT has issued a statement of objections (see note 1) to the parties setting out its provisional findings that from 5 November 2001 to March 2004 Oakley supplied House of Fraser with its sunglasses on condition that House of Fraser agreed to sell them at prices no lower than the Oakley suggested selling price.

The OFT has now given the parties the opportunity to make written and oral representations on the statement of objections, which the OFT will take into account before making its final decision as to whether the Chapter I prohibition has been infringed and as to the appropriate amount of any penalties the OFT may decide to impose on the parties (see note 3).

NOTES

1. A statement of objections gives notice of a proposed infringement decision under the Competition Act 1998 to the parties involved.  The parties then have the opportunity to make written and oral representations in response to the case set out by the OFT. Such representations will be considered by the OFT before any final decision is made.

2. The Competition Act 1998 prohibits agreements, practices and conduct that may have a damaging effect on competition in the UK. The Chapter I prohibition covers anti-competitive agreements and concerted practices, that have the object or effect of preventing, restricting or distorting competition in the UK or a part thereof.

3. In calculating financial penalties the OFT takes into account a number of factors including seriousness of infringement, relevant turnover and any mitigating and/or aggravating factors. The basis of the OFT's considerations are set out in 'OFT's guidance as to the appropriate amount of a penalty' (download guidance - pdf 145 kb). The final amount of a penalty calculated in accordance with the guidance may not in any event exceed 10 per cent of the worldwide turnover of an undertaking in its last business year (or 10 per cent of its UK-wide turnover in the financial year preceding the date when the infringement ended if prior to 1 May 2004).

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