Websites comparing prices are probed by watchdog

THE competition watchdog has launched a review of price comparison websites.

The Competition and Markets Authority (CMA) said the investigation will consider concerns such as whether consumers could be made more aware about how the sites earn money and how this affects their service.

It will also examine if arrangements between the sites and their suppliers might restrict competition.

The CMA said that while price comparison websites had ultimately “helped to inject significant competition into a number of markets”, it noted “concerns about certain issues, including whether consumers can trust the information that’s available”.

It will focus on comparison websites for car insurance, utilities and bank accounts, following on from its previous investigations into individual sectors and concerns over whether sites promote certain deals higher than others.

CMA acting chief executive Andrea Coscelli said: “Digital comparison tools have played a big part in changing markets for the better, bringing new ways of doing things and forcing businesses to up their game. Consumers have benefited as choice and access to goods and services have grown.

“Since emerging a decade or so ago, such tools have helped to inject significant competition into a number of markets. They have made it easier for consumers to engage in many markets.

“However, they have been more successful in some sectors than others. We want to understand why this is the case and whether more can be done to ensure consumers and businesses can benefit from them more widely.”