What action will the CMA take?
Today, the CMA has issued Compare The Market a “statement of objections”, which sets out its provisional view that the contracts break competition law.
The company will now have an opportunity to respond in detail and the CMA will consider the response and any further evidence before reaching a final decision.
What does the CMA say?
CMA chief executive Andrea Coscelli said: “Over 20 million UK households have home insurance and more than 60% of new policies are found on price comparison sites. Therefore it’s crucial that these companies are able to offer customers their best possible deals.
“Our investigation has provisionally found that Compare The Market has broken the law by preventing home insurers from offering lower prices elsewhere. This could result in people paying higher premiums than they need to.”