The £17.9m fine imposed on ComparetheMarket by the Competition and Markets Authority is a great win for both consumers and insurers alike.
Many consumers rely on comparison websites like ComparetheMarket to get the best deal and are in fact used as a ‘one stop shop’ for insurance purchases.
As a result of the way in which ComparetheMarket has been managing their insurer relationships, by effectively stopping them from offering lower prices on other comparison websites, consumers may not have been receiving the best deal available.
ComparetheMarket’s selling point is that they are working for the consumer and this ruling flies in the face of that belief and will undoubtedly damage their reputation.
Investigations and fines like these are a warning to all companies that they should be alive to competition laws or they risk being hit with a substantial fine, which can be as high as 10% of its annual worldwide group turnover.