CMA closes ESS case following developments in the market
The CMA has closed its investigation into education software firm ESS after developments in the market meant its intervention is not currently needed.
The Competition and Markets Authority (CMA) opened its case into ESS in May this year following concerns the firm may have broken the law by taking action to prevent schools from switching to an alternative management information systems (MIS) provider.
MIS are important databases used to handle student information, such as attendance and safeguarding, and most UK schools are required to have such databases in place.
Schools had reported to the CMA that ESS had warned them not to share a copy of their database with a new provider, as doing so would breach ESS’ intellectual property (IP) rights. Schools also informed the CMA that sharing database copies is a longstanding and widespread practice used in the sector for data transfer of this kind – a practice ESS stated it was unaware of. The CMA was concerned that without a viable method of sharing data, schools’ ability to move to a new provider would be hampered.
Moreover, while some means of switching were permitted by ESS, these options were reportedly complex.
Since the launch of its investigation, the CMA has gathered and analysed a significant amount of evidence, as well as engaging with the sector, schools, and ESS itself.
The CMA has found that:
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A considerable number of schools have managed to switch from ESS to new providers
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ESS’ share of the MIS market in England is declining, falling from approximately 50% to 46% in just a few months, while the share of its main competitor – The Key Group – has increased to a similar level at around 41%
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Competitors and third parties have been developing ways to migrate schools’ data using tools that do not raise IP concerns with ESS – these methods are less burdensome on schools, less error-prone than previous options (and remove the need for sharing copies), and are expected to be operational in advance of any March 2025 contract renewals
Given the above developments, the CMA believes its intervention is not required at this time, and that continuing to probe the firm would be unlikely to have further positive impact on the sector.
For more information, see the CMA’s investigation into conduct of Education Software Solutions Limited case page.
Notes to editors
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All enquiries from journalists should be directed to the CMA press office by email on press@cma.gov.uk or by phone on 020 3738 6460.
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A significant number of ESS’ contracts end in March 2025.