CMA shows its market investigation enforcement teeth

By way of background, in 2016 the CMA completed its market investigation into the supply of personal current accounts, SME business current accounts and SME loans in the UK ("Retail Banking").  Having found evidence of adverse effects on competition, the CMA introduced a package of remedies aimed at, amongst others, users of personal current account overdrafts.  This included a requirement that, by 2 August 2017, such customers are provided with the maximum monthly charge ("MMC") that would be incurred as a result of exceeding a pre-agreed credit limit.  

Co-operative Bank informed the CMA that it would be unable to comply with this deadline.  The CMA therefore issued directions, on 2 August 2017, setting out a programme of revised dates by which compliance must be achieved (with full compliance required by 5 January 2018).  However, the directions also require Co-operative Bank to ensure that customers adversely impacted by the bank's non-compliance between these dates are duly compensated.  Accordingly, based on the CMA's analysis of customer behaviour in 2016, it expects that Co-operative Bank will be required to compensate approximately 1,300 of its customers.

On 31 August 2017, the CMA also issued directions to seven hospitals subject to its 2014 market investigation into the supply of privately-funded healthcare services in the UK ("Private Healthcare").  Following findings of adverse effects on competition in that investigation, the CMA's remedies package introduced an obligation that operators of private healthcare facilities supply the Private Health Information Network (a non-profit independent body established by the CMA) with quarterly data relating to specific performance measures.  The CMA has concluded that seven (all National Health Service Trusts (or Health and Social Care Trusts in Northern Ireland) that also treat private patients) have failed to make sufficient progress in meeting this requirement.   The directions require the seven hospitals to provide this information by 31 March 2018, and note that the CMA may apply for a court order to enforce compliance.

The CMA's decisions to issue these directions underline its resolve to ensure compliance with, and the effectiveness of, its market investigation remedies.