Notícias

Infant formula and follow-on formula market study

The CMA is undertaking a market study into infant formula and follow-on formula in the United Kingdom.From:Competition and Markets AuthorityPublished20 February 2024Case type:MarketsCase state:OpenMarket sector:Retail and wholesaleOpened:20 February 2024

Contents

1. Administrative timetable
2. Launch of market study
3. Personal information

Administrative timetable

The table above outlines the CMA’s statutory administration timetable. The CMA intends to publish a final report on its market study in September 2024.

Launch of market study

20 February 2024: The Competition and Markets Authority (CMA) is undertaking a market study into infant formula and follow-on formula in the UK.

We are inviting comments by 13 March 2024 from all interested parties on the issues raised in the invitation to comment.

• Market study notice (PDF, 151KB) (20.2.24)
• Invitation to comment (PDF, 319KB) (20.2.24)
• Press release: CMA to scrutinise infant formula market through a market study (20.2.24)
• Price inflation and competition in food and grocery manufacturing and supply (29.11.23)

Personal information

The CMA may collect, use and share personal data for its market studies under the Enterprise Act 2002. This includes processing personal data for the purposes of the UK General Data Protection Regulation and the Data Protection Act 2018.

For more information about how the CMA handles personal information, visit the CMA’s Personal information charter.

Published 20 February 2024

Contents

CMA to scrutinise infant formula market through a market study

The market study into infant formula is part of the CMA’s ongoing work to contain cost of living pressures in the groceries sector.From:Competition and Markets AuthorityPublished20 February 2024

The Competition and Markets Authority (CMA) has today launched a market study into the supply of infant formula in the UK, after publishing its initial findings and committing to look at the sector in further detail in November last year.

By launching a market study, the CMA will now be able to use its compulsory information gathering powers, rather than rely on firms providing information voluntarily. Any recommendations to government resulting from the work will now also have a formal status.

The CMA intends to conduct the market study as swiftly as possible and with the intent of publishing a final report in September 2024. As outlined in the invitation to comment, the CMA’s infant formula market study will gather additional evidence on:

• consumer behaviour, the drivers of choice, and the information and advice available to consumers to support their decisions
• the role of the regulatory framework and its enforcement in influencing market outcomes
• the supply-side features of the market (such as barriers to entry and expansion)

Following this, it will consider whether there are problems in the market and, if so, what actions could or should be taken to address these. This could include making recommendations to government – for example, on the regulations governing how infant formula is marketed, or on the information provided to parents to help them choose an infant formula brand.

Today’s update follows the CMA’s Autumn 2023 report into price inflation and competition in the Groceries sector, which found that the average price of infant formula had risen by 25% over the previous 2 years and that families could make significant savings of more than £500 over the first year of a baby’s life, through buying cheaper infant formula options.

Sarah Cardell, CEO of the CMA, said:

Infant formula is a key part of the weekly shop for many parents across the UK, who rely on these products to ensure their baby gets all the essential nutrients they need.

Whilst it’s a positive sign that prices of some products have fallen since our update last November, the cost of infant milk remains at historically high levels. We’re concerned that parents don’t always have the right information to make informed choices and that suppliers may not have strong incentives to offer infant formula at competitive prices.

We are determined to ensure this market is working well for the many new parents who depend on infant formula and it’s essential that any changes we propose are based on evidence and a strong understanding of the market. That’s why we’ve now decided to take forward our work on infant formula as a market study, using our formal legal powers.

More information is available on the CMA’s Infant Formula Market Study case page.

Notes to editors:

1. The CMA is now inviting comments from interested parties. It will continue to engage closely with key stakeholders, including governments in all 4 UK nations, other public authorities, third-sector bodies, and representative groups. The CMA will also (alongside the publication of the invitation to comment, and market study notice) issue requests for information to suppliers and retailers of infant formula.
2. The CMA’s market study will look into infant formula, including formulas labelled by manufacturers as foods for special medical purposes that are sold direct to consumers without prescription – for example, certain ‘anti-reflux’ and ‘comfort’ formulas. The study will also consider follow-on formula. This is because it is a substitute for infant formula for babies aged 6 to 12 months, and because it’s subject to different marketing regulations that may affect the operation of the infant formula market. The study will also consider milks marketed for children over 12 months of age – in particular, ‘growing up’ and ‘toddler’ milks to the extent that these impact how the markets for infant and follow-on formula operate. These milks are often packaged in a similar way and sold alongside infant and follow-on formula.
3. Market studies examine why particular markets may not be working well for consumers. They may lead to a range of outcomes, including a) making recommendations to the government to change regulations or public policy; b) encouraging businesses in the market to self-regulate; c) taking consumer or competition law enforcement action against firms; d) making a reference for a more in-depth (phase 2) market investigation; e) “clean bill of health”.
4. A market study formally begins with the publication of a Market Study Notice by the CMA.
5. The CMA must within 12 months of publication of a market study notice publish a market study report setting out its findings and the action (if any) it proposes to take. For more information on the CMA’s market study process, visit: Market studies and investigations – guidance on the CMA’s approach.
6. For more information on the CMA’s work in the groceries sector to date, visit: The CMA’s action to help contain cost of living pressures collection page.
7. All enquiries from the general public should be directed to the CMA’s General Enquiries team on general.enquiries@cma.gov.uk or 020 3738 6000.
8. All media enquiries should be directed to the CMA Press Office by email on press@cma.gov.uk or by phone on 020 3738 6460.

Australian Competition Tribunal authorises ANZ’s proposed acquisition of Suncorp Bank

Date

20 February 2024

Topics

Mergers

Banking and finance

The ACCC notes the Australian Competition Tribunal’s decision today to grant authorisation for ANZ’s proposed acquisition of Suncorp’s banking business.

The Tribunal’s decision sets aside the ACCC’s earlier decision not to grant authorisation for the proposed acquisition. The Tribunal is the review body for authorisation decisions made by the ACCC. 

On 4 August 2023 the ACCC said it would  not authorise the proposed acquisition , because it was not satisfied the transaction would not result in a substantial lessening of competition in the supply of home loans nationally, small to medium enterprise banking in Queensland, and agribusiness banking in Queensland, and that the claimed public benefits did not outweigh the likely public detriment.

The ACCC was concerned that the proposed acquisition of Suncorp Bank by ANZ would further entrench an oligopoly market structure that is dominated by the four major banks.

Based on its review of the material before the ACCC, and some limited new information, the Tribunal has concluded that it is satisfied that the transaction would not result in a substantial lessening of competition in any relevant market.

The Tribunal found many of the public benefits claimed by ANZ and Suncorp were either not public benefits or were not specific to the proposed acquisition. However, the Tribunal found that any detriments from the acquisition were uncertain and unlikely to outweigh the integration benefits.

“The ACCC notes the decision and will reflect on it. The Tribunal’s decision demonstrates the checks and balances of an administrative merger approval process.” ACCC Chair Cass-Gottlieb said.

“The Tribunal made findings on fundamental matters that informed our concerns, including that the national market for home loans is currently conducive to coordination and that material barriers to entry and expansion remain. However, the Tribunal didn’t consider that the proposed acquisition would meaningfully impact on the likelihood of coordination.”

“Banking markets are critical for many homeowners, businesses and farmers. The ACCC will continue to apply scrutiny to these markets across the breadth of our functions including merger assessments and enforcement investigations,” Ms Cass-Gottlieb said.

Background

On 2 December 2022, the ACCC received an application for merger authorisation from ANZ in relation to its proposal to acquire Suncorp Bank.

During the period of its review the ACCC gathered and tested a substantial body of evidence including approximately 200,000 documents, analysis of relevant banking data and conducted 10 compulsory interviews with bank executives. That evidence was brought before the Tribunal. The Tribunal commented that it had a very substantial quantity of information, documents and evidence placed before it.

The ACCC issued a statement of preliminary views on 4 April 2023.

On 4 August 2023, the ACCC denied authorisation for ANZ to acquire Suncorp Bank.

On 25 August 2023, ANZ and Suncorp applied to The Australian Competition Tribunal for review of the ACCC’s determination under section 101 of the Competition and Consumer Act.

In such a review, the Tribunal may affirm, vary or set aside the ACCC’s determination. The role of the ACCC in this review was to assist the Tribunal.

The Tribunal is a review body. A review by the Tribunal is a re-consideration of a matter.

The Tribunal has jurisdiction under the Competition and Consumer Act to hear a variety of applications, including reviews of determinations of the ACCC granting or refusing authorisation for company mergers and acquisitions.

In conducting its review, the Tribunal applies the same ‘authorisation test’ as the ACCC and is generally limited to the information which was before the ACCC.

Under the Competition and Consumer Act, the Tribunal must not grant authorisation unless it is satisfied, in all the circumstances, that either (1) the conduct would not have the effect or be likely to have the effect of substantially lessening competition; or (2) the conduct would result or be likely to result in a benefit to the public, and the benefit would outweigh the detriment to the public that would result or be likely to result.

Authorisation provides statutory protection from court action for conduct that might otherwise be in breach of the competition provisions of the Competition and Consumer Act, including section 50 which prohibits acquisitions which are likely to substantially lessen competition.

The Full Federal Court of Australia can hear appeals from the Australian Competition Tribunal in limited circumstances.

Release number

15/24

General enquiries

Contact us to report an issue or make an enquiry.

Media enquiries

Media Team – 1300 138 917, media@accc.gov.au

Casos

CADE

Ato de Concentração nº 08700.000691/2024-41

Requerentes: NovaAgri Infra-Estutura de Armazenagem e Escoamento Agrícola S.A. e Safras Armazéns Gerais Ltda. Advogados: Olavo Zago Chinaglia e Beatriz Catto Ribeiro de Castro. Decido pela aprovação sem restrições.

CMA

BRIDGEPOINT / NEXITY LAMY AND ORALIA PARTENAIRES

Merger

M.11447

Last decision date: 19.02.2024 Simplified procedure