Lawyer warns that more CMA actions on their way

Last week's dramatic decision by the Competitions and Markets Authority to fine three estate agencies and a publisher for alleged cartel-like anti-competitive behaviour may be just the start of many other similar actions, a legal firm is warning.

The CMA last week levied £775,000 in fines on Three Counties Estate Agents Ltd and publisher Trinity Mirror (Southern) in a case first reported last year on Estate Agent Today.

The offence by the three agents in TCEA Ltd - Waterfords (Estate Agents) Limited, Castles Property Services Ltd and Hamptons International - was to collude, cartel-style, to prevent the advertising of agents' fees in the Surrey and Hants Star Courier for up to nine years.

Now Shoosmiths - a £93m legal company with a number of FTSE 250 and international clients - says in a briefing in The Lawyer magazine says the decision was a clear message from the CMA that it has the power to investigate and punish anti-competitive conduct.

In particular, the CMA does not limit itself to reviewing conduct in large national markets. Indeed, this case involved a relatively small, localised market, relating to advertising arrangements in a single local newspaper. In that context, the magnitude of the fines is significant says the briefing's author, Simon Barnes.

Interestingly, the CMA says it has received complaints of potentially similar conduct concerning alliances in other parts of the UK. This may result in further investigations into similar restrictions, regardless of the size of company involved, particularly if they take no steps to remove such restrictions and ensure compliance in light of the present investigation warns Barnes.

Earlier this week online estate agency chief Russell Quirk predicted the CMA verdict could used to justify his complaint to the authority about new portal OnTheMarket.