Investigation into conduct of Education Software Solutions Limited

The CMA has accepted commitments offered by ESS that address the CMA’s competition concerns regarding ESS’ move to 3 year contracts in the supply of management information systems software without giving customers an opportunity to avoid the change.

From:
Competition and Markets Authority
Published
27 April 2022
Last updated
10 January 2023 — See all updates
Case type:
CA98 and civil cartels
Case state:
Closed
Market sector:
Communications
Outcome:
CA98 - commitments
Opened:
26 April 2022
Closed:
10 January 2023

Case timetable

Date Action
10 January 2023 CMA commitments decision published and case closed
November 2022 to January 2023 CMA consideration of representations received in response to the consultation on commitments
17 November 2022 to 8 December 2022 Commitments consultation period
17 November 2022 Consultation opened on commitments proposed by ESS
27 October 2022 The CMA is continuing its investigation into ESS’ move to 3 year contracts. Decision on administrative priorities grounds to close the aspect of the investigation relating to ESS’ pricing of certain software packages (specifically, ESS’ management information system software and its financial management software).
26 April 2022 to December 2022 Initial investigation: information gathering, including issue of formal or informal information requests to ESS, competitors and customers. CMA analysis and review of information gathered
26 April 2022 Investigation opened

Decision to accept binding commitments

10 January 2023: The CMA published its decision to accept commitments from ESS that enable certain schools – meaning those which had considered switching providers but concluded they did not have sufficient time to do so – to apply to an independent adjudicator for a 12-month break clause. If granted, the clause will allow them to exit their current three-year contract with ESS and choose an alternative provider, should they so wish.

Schools can apply for a break clause from noon today until 10 February 2023 (via https://www.ess-sims.co.uk/breakoffers). Any applicants will be notified by the independent adjudicator – Evelyn Partners – as to whether they have been successful by no later than 31 March 2023.

Formal acceptance of commitments by the CMA has brought the investigation to an end, with no decision being made as to whether the Competition Act 1998 has been infringed.

Consultation on commitments

17 November 2022: the CMA published a notice of intention to accept commitments offered by ESS and invited representations from interested third parties on the proposed commitments. The CMA will consider any representations made in response to the consultation before making a final decision on whether or not to accept the proposed commitments.

Administrative priorities decision

27 October 2022: The CMA is continuing its investigation into whether ESS might be abusing a dominant position in the supply of management information systems. The CMA is concerned that ESS has effectively moved customers from 1 year contracts to 3 year contracts without giving them adequate opportunity to avoid the change. The CMA is closing the other aspect of its investigation relating to ESS’ pricing of certain software packages (specifically, ESS’ management information system software and its financial management software). This aspect is being closed on administrative priorities grounds.

Change log

The following changes have been made to the case timetable since it was first published in April 2022:

Date of change Reason for change Change made to timetable
17 November 2022 The CMA is consulting on commitments offered by ESS Dates for commitments consultation period and estimated dates for CMA’s consideration of representations received in response to the consultation on commitments
26 September 2022 Additional time needed to analyse information Date for completing initial investigation extended from August 2022 to December 2022

Case launch

27 April 2022: The Competition and Markets Authority (CMA) launched an investigation under Chapter II of the Competition Act 1998 into suspected breaches of competition law by Education Software Solutions Limited (ESS).

The CMA is investigating whether ESS might be abusing a dominant position in the supply of management information systems software by moving customers from 1 year contracts to 3 year contracts without giving customers adequate opportunity to avoid the change and/or via the pricing of certain software packages in a way that restricts competition.

Notes

  • the investigation is under Chapter II of the Competition Act 1998
  • the CMA has not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections to any of the parties under investigation. Not all cases result in the CMA issuing a statement of objections
  • the CMA will consider any representations it receives before any decision is taken as to whether competition law has in fact been infringed
  • further detail of the CMA’s procedures in Competition Act 1998 cases is available in CMA8
  • changes to the timings of original entries in the case timetable will be made where the estimated timing changes

Personal data

The CMA may collect, use and share personal data for its investigations, including investigations under the Competition Act 1998. This includes processing personal data for the purposes of the UK General Data Protection Regulation and the Data Protection Act 2018. You can find more information about how the CMA handles personal information in the CMA’s Personal Information Charter.

Contacts

Assistant Director

Clementine Messent (020 3738 6153, clementine.messent@cma.gov.uk)

Director

Louise Banér (020 3738 6056, louise.baner@cma.gov.uk)

Senior Responsible Officer

Ann Pope (020 3738 6786, ann.pope@cma.gov.uk)

Updates to this page

Published 27 April 2022
Last updated 10 January 2023 + show all updates

  1. Decision to accept commitments published.

  2. Consultation on commitments published.

  3. Administrative priorities decision published.

  4. Case timetable updated and change log added.

  5. First published.

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