Rangers could face a fine after the Competition and Markets Authority provisionally found that they, JD Sports and Elite Sports broke competition law by fixing the retail prices of certain merchandise products.

It's alleged that between September 2018 and July 2019, Elite and JD fixed the prices of certain club-branded merchandise.

Rangers are also accused of having colluded in the process but "only to the extent of fixing the retail price of adult home short-sleeved replica shirts from September 2018 to at least mid-November 2018".

A provisional finding by the CMA states that all three parties allegedly colluded to stop JD Sports from undercutting the the price of the home shirt as it was sold on the club's online store, which was run by Elite.

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The company was at the time the manufacturer of official Rangers merchandise, which was sold through the Gers Online Store, and later in shops in Glasgow and Belfast.

It's alleged that the club became concerned that JD Sports was selling the home shirt at a lower price than Elite, Rangers' retail partner at the time.

The three parties are said to have agreed that JD Sports would raise its price for the shirt from £55 to nearly £60, an increase of close to 10 per cent.

That would therefore bring the prices in line with that of the online store.

Elite and JD Sports, without the involvement of Rangers, are also accused of fixing the price of other merchandise items including training wear and replica kit, over a longer period.

Glasgow Times:

The CMA's provisional judgement found this was "to avoid competition between them and protect their profit margins at the expense of fans".

Elite and JD Sports applied for leniency during the investigation and confessed to cartel activity.

That will earn both a reduction on any penalty which may be imposed.

A business found guilty of breaching the Competition Act 1998 can be fined up to 10 per cent of its annual worldwide group turnover.

Michael Grenfell, Executive Director of Enforcement at the CMA, said: "We don’t hesitate to take action when we have concerns that companies may be working together to keep costs up.

"Football fans are well-known for their loyalty towards their teams. We are concerned that, in this case, Elite, JD Sports and, to some extent, Rangers, may have colluded to keep prices high, so that the 2 retailers could pocket more money for themselves at the expense of fans."

The findings are only provisional, and the companies will have the chance to make representations to the CMA before a final decision is reached.

Rangers said in a statement: "The Rangers Football Club Limited (‘Rangers’) confirms that it has today received a Statement of Objections (‘SO’) from the Competition and Markets Authority (‘CMA’) which sets outs the CMA’s preliminary findings in relation to its investigation into the pricing of Rangers-branded replica football kit between September 2018 and November 2018. The SO represents the CMA’s provisional view only. It is not a finding that Rangers has broken the law and does not mean that the CMA will issue a final decision or impose a fine on Rangers. 

“Rangers is committed to operating its business in full compliance with all laws, including competition law, and treats this matter very seriously. As such, Rangers will review in detail the CMA’s preliminary findings and will be submitting its response to the CMA in due course. Rangers notes that it has cooperated with the CMA since the investigation was initiated and will continue to do so.”