An appeal tribunal has told the UK’s competition regulator to reconsider its decision to block the takeover of Footasylum by JD Sports, claiming it failed to take sufficient account of the COVID-19 pandemic or the growth of brands selling direct to consumers, reported the Financial Times.
In a 93-page ruling published on Friday, November 13, the Competition Appeal Tribunal concluded that “the assessment of [Covid-19] effects is sufficiently material to the Competition and Markets Authority’s overall conclusions as to require further examination of the final report as a whole.”
It also upheld JD Sports’ view that the growth of direct-to-consumer businesses at sportswear giants Nike and Adidas, which accelerated during the pandemic, posed a competitive threat, saying that the CMA did not have evidence to rule otherwise.
“We therefore remit the case to the CMA for reconsideration in the light of this judgment,” it added.
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