The UK competition watchdog has launched an investigation into Leicester City FC and retailer JD Sports over the sale of club merchandise, reported Yahoo News.
The Competition and Markets Authority (CMA) stated it believes it has “reasonable grounds to suspect one or more breaches of competition law” by the parties.
It added that the probe is directly related to suspected infringements of commercial agreement legislation regarding the sale of club branded products and merchandise in the UK.
“The CMA has not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections or, ultimately, an infringement decision, to any party under investigation,” the regulator added.
“Not all cases result in the CMA issuing a statement of objections or an infringement decision.”
A Leicester City spokesman said, “Leicester City Football Club takes its obligations to comply with competition law very seriously and is fully cooperating with the Competition and Markets Authority in respect of the investigation announced this morning.
“We shall be making no further statements regarding this investigation for the time being.”
A spokesman for JD Sports said, “We are cooperating fully with the CMA’s investigation.
“We have no further comment at this time.”
The probe into Leicester City and JD Sports also comes less than a year after the regulator launched an investigation into price fixing of replica Rangers football kits sold by JD Sports and other retailers.
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