UK Competition Watchdog Launches Full-Scale Investigation into Baby Formula Prices

The Competition and Markets Authority aims to address concerns over 'historically high' infant formula costs, with a report due in September.

The Competition and Markets Authority (CMA) has initiated a comprehensive market study into the baby formula sector, focusing on price scrutiny and market dynamics.
Infant formula prices have surged by 25% over the past two years, prompting the watchdog to investigate potential market exploitation.
Danone and Nestlé, controlling 85% of the UK market, are under scrutiny for their pricing strategies, with recent voluntary price reductions by Danone noted.
The investigation will explore consumer behavior, regulatory impacts, and barriers to market entry, aiming to enhance competition and consumer information.
Potential outcomes include regulatory recommendations to the government, focusing on marketing practices and consumer guidance on choosing formula brands.