Price comparison sites face probe by competition watchdog

The competition watchdog has launched an investigation into price comparison websites.

It will look into whether sites such as MoneySuperMarket and Gocompare are working well for consumers, business and the economy.

These sites, and similar smartphone apps, are used by millions to search for services such as motor insurance, energy suppliers and banking.

The Competition and Markets Authority (CMA) said they can "play a powerful role" in competition and helping consumers find better deals.

But it will look at concerns about whether consumers should know more about how the sites make their money, and how this might affect their services.

The CMA will also consider whether the arrangements between the sites or apps and the suppliers that sell through them might restrict competition.

CMA chief executive Andrea Coscelli said comparison sites had been more successful at injecting competition into some sectors than others.

He said: "We want to understand why this is the case and whether more can be done to ensure consumers and businesses can benefit from them more widely.

"Some people have also raised concerns about certain issues, including whether consumers can trust the information that's available, and the study will look at these issues."

The CMA first flagged last year that it would look at price comparison sites.

The study will run for an initial period of six months including a four-week public consultation.

Consumer minister Margot James welcomed the study, saying: "Consumers deserve to have access to the best deals and the clear, reliable information they need to make the best decisions."

Alex Neill, director of policy and campaigns at consumer group Which?, said: "This market study is a welcome step to ensure consumers can be confident about getting the right deal for them."

MoneySuperMarket said: "We look forward to working with the regulator to provide information and support as its work progresses."