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The OFT has today opened a public consultation on commitments offered by epyx Limited (Epyx). The commitments seek to address the OFT's competition concerns regarding Epyx's conduct in the market for the supply of service, maintenance and repair platforms (SMR platforms) in the UK. Epyx supplies the 1link Service Network SMR platform in the UK.

SMR platforms are online platforms that help businesses with vehicle fleets (such as leasing companies and rental companies) to procure SMR services for these vehicles from other businesses (such as vehicle dealers, fast-fit outlets and garages).

The commitments have been offered in response to the OFT's investigation under the Competition Act 1998 following a complaint alleging an abuse of a dominant position. If accepted by the OFT, the commitments will bring the investigation to an end.

The OFT is concerned that certain provisions in Epyx's contracts may restrict its SMR platform customers - particularly those that manage vehicle fleets - from evaluating, developing, marketing and using alternative systems, and may therefore raise barriers to market entry.

Epyx has offered commitments that would relax or remove these contractual restrictions, giving Epyx's customers the freedom to work with, develop and sponsor alternative systems while also enjoying more frequent opportunities to switch supplier. Customers will additionally benefit from technical support from Epyx, where this is reasonably necessary to facilitate switching.

The OFT considers that these commitments offer clear opportunities for competitors to enter the market and provide Epyx's current customers with the option to switch to rival suppliers if they choose to. The OFT therefore proposes to accept these commitments, subject to consultation.

Ann Pope, Senior Director in the OFT's Services, Infrastructure and Public Markets group, said:

'The OFT is consulting on whether these commitments will provide an immediate and effective means of encouraging meaningful competition in the SMR platform market in the UK. Under the proposed commitments, a range of existing barriers to entry should be significantly reduced and the market opened to choice and innovation. The OFT would now like to hear the views of all interested parties before it makes its decision on whether to accept the commitments.'

Comments on the proposed commitments should be submitted to the OFT by 5pm on 4 April 2014 via email and/or by post, addressing their response to:

SMR Platforms Team
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London EC4Y 8JX

Email: smrplatforms@oft.gsi.gov.uk

NOTES

1. SMR platforms are used by companies who manage the SMR of vehicle fleets, such as leasing companies, rental companies and corporate fleets. These companies buy (demand) SMR services and are therefore referred to as 'demand-side customers'. SMR services are provided by a wide range of suppliers including vehicle dealers, fast-fit outlets and garage chains. These suppliers are referred to as 'supply-side customers'. SMR platforms are two-sided in that they connect these two groups of customers (the demand-side and the supply-side). 
2. The commitments have been offered by epyx Limited and its ultimate parent company, FleetCor Technologies, Inc. 
3. The Competition Act 1998 empowers the OFT to accept such binding commitments from parties under investigation as it considers appropriate to address the OFT's competition concerns. Where the OFT proposes to accept the commitments offered, it will consult those who are likely to be affected by them and give them an opportunity to give the OFT their views. 
4. When the OFT has formally accepted commitments, it must close its investigation into the conduct that was the subject of the investigation. The OFT may re-open its investigation and take other action in certain limited circumstances (for example, where it has reasonable grounds for suspecting non-compliance with the commitments or believing that there has been a material change of circumstances since the commitments were accepted).
5. Any decision by the OFT accepting binding commitments will not constitute a determination as to the legality or otherwise of the conduct in question, either prior to acceptance of the commitments or once the commitments are in place.
6. The OFT closes on 31 March 2014, after which this consultation and any subsequent decision becomes the responsibility of the Competition and Markets Authority (CMA). Correspondence sent to the address above will be forwarded to the CMA. 
7. On 1 April 2014, the Competition and Markets Authority (CMA) will become the UK's lead competition and consumer body. The CMA will bring together the existing competition and certain consumer protection functions of the Office of Fair Trading and the responsibilities of the Competition Commission, as amended by the Enterprise and Regulatory Reform Act 2013.