(MENAFN- ProactiveInvestors)Shares in Moneysupermarket.com (LON:MONY) took a hit today as the UK's energy watchdog Ofgem said it was investigating possible collusion over commissions among price comparison sites. The company said: 'Ofgem has required the company to provide information in connection with this investigation pursuant to a notice issued under section 26 of the Competition Act 1998. 'Ofgem is gathering this information to establish whether to include the company as a subject of its investigation'. Rival uSwitch recently bought by Zoopla (LON:ZPLA) has also received an s26 notice for the investigation though the company said Ofgem has indicated that uSwitch is not itself a subject of investigation. An s26 notice can be issued to those believed to have breached rules or to firms to provide evidence or background information. Ofgem said it had 'opened an investigation into whether two or more parties have shared information on the commission rates they charge to energy suppliers" but refused to comment further on the open investigation. According to analysts at UBS an investigation of this scale is likely to take between three and nine months. Analysts at Peel Hunt reckon that if investigated 'The upside is an improvement of practices in the energy market – so a levelling of the playing field. The downside is a fine of 10% of revenue and substantial damage to reputation.' Shares in Moneysupermarket sunk 9% to 278p on the news while Zoopla's eased 5% to 260p.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.