Out-Law News

Ofgem investigates paid online search advertising on price comparison websites


The UK's energy market regulator has opened an investigation to determine whether the paid-for search advertising arrangements of some price comparison websites are in line with UK competition laws.

Ofgem did not release many details about its investigation but explained that the latest investigation, launched last week, follows a separate investigation it launched in February into whether "two or more companies providing a supporting service for the energy industry have breached competition law".

The February investigation has involved Ofgem looking into whether companies have been sharing information on the commission rates they charge energy suppliers, it said.

"On 15 October we announced a separate investigation to look at whether some price comparison websites have breached competition law in relation to paid online search advertising," Ofgem said. "For the avoidance of doubt, these investigations do not affect consumers' ability to use switching sites to get the best energy deal."

"The fact that we have opened these investigations does not mean there has been a breach of competition law," it said.

Earlier this year Ofgem updated its voluntary 'confidence code' for price comparison websites in an effort to prevent them from displaying products on which it earns commission more prominently than those on which it doesn't.

Both EU and UK competition rules place a general ban on companies putting in place agreements that have as their object or effect the prevention, restriction or distortion of competition.

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