UK: CMA orders Reckitt to licence the K-Y brand to a competitor

The UK’s competition regulator has found that consumer goods company Reckitt Benckiser Group PLC’s acquisition of the K-Y personal lubricants brand could lead to a lessening of competition in competition and will force Reckitt to licence the K-Y brand to a UK competitor for eight years.

The CMA said K-Y and Durex control nearly three-quarters of the personal lubricants market in supermarkets and national pharmacies, where the majority of customers purchase the products. The regulator said there is little evidence to suggest that other outlets, including specialist shops or online retailers, would be able to exert sufficient pressure to stop price rises in supermarkets and national pharmacy chains.

In order to remedy the issues the CMA has outlined, it said Reckitt will be required to licence the K-Y brand to a UK competitor for eight years, allowing enough time for it develop a new brand to rival the Durex range which could then gain access to supermarkets and pharmacies.

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