Rivals complain about Dixons

Dixons dominates the UK computer market

Retailer John Lewis has lodged a fresh complaint against Dixons with officials at the Office of Fair Trading, claiming that exclusive computer deals signed by the company are harming competition.

The Dixons group - which owns PC World and Currys - has signed deals with two major computer companies - Compaq and Packard Bell - to become their exclusive UK suppliers.

Anti-competitive practices

Restrictions on prices

Restrictions on customers or markets

Exclusive supply or purchasing contracts

Agreements by firms not to compete against each other

John Lewis said the exclusive deal amounted to a major constraint on competition and would lead to higher prices and poorer service.

It says that consumers should be given the choice of where they want to buy their own computer.

The Office of Fair Trading last month declined to investigate the matter, saying that consumers can buy computers by many other channels including direct sales by telephone or over the internet.

But John Lewis, along with computer retailer Tempo, hopes to persuade the watchdog to change its mind with new evidence.

They argue that since 60% of UK households do not own a computer, they cannot make purchases on the internet.

They also say that first-time computer buyers need the kind of support and advice that only a store can offer, and claim that Dixons already has the market wrapped up with a 60% market share.

But Dixons dismisses the complaint, saying that exclusive deals help suppliers to keep costs down.

That saving is then passed on to the consumer as lower prices, Dixons said.

Under the new Competition Act, Dixons could be fined up to 10% of turnover for anti-competitive actions.