UK probes education software firm ESS for alleged anti-competitive behaviour

FCS Software Solutions

14/05/2024 11:24

May 14 (Reuters) - Britain's competition regulator is
investigating whether Education Software Solutions Ltd (ESS)
broke the law by trying to prevent schools from switching to a
new management information system provider, it said on Tuesday.
    The Competition and Markets Authority (CMA) said it suspects
that the education software provider might be abusing its
dominant position in the market by making it difficult for
schools to switch providers ahead of contract renewal dates.
    
    WHY IT'S IMPORTANT
    Education Software Solutions Ltd (ESS) is the leading
provider of management information systems for schools across
the UK. According to the CMA, ESS commands approximately 50% of
the market share in England, with an even larger footprint in
Wales and Northern Ireland. 
    Management information systems are databases used to handle
student information such as attendance.  
   
    KEY QUOTES
    "We're concerned about the complaints we've received
regarding ESS's alleged behaviour," Juliette Enser, Interim
Executive Director of Competition Enforcement at the CMA, said.
    "It's essential that schools are able to pick the most
appropriate system for their needs - and change providers with
ease when their contract is up."
    
    CONTEXT
        The regulator said it had received complaints from
schools alleging that ESS has stated it would not be able to
share a copy of its database with a new provider due to concerns
about ESS's intellectual property rights.
  
        The CMA noted that sharing database backup copies is an
established practice in the sector for data transfer purposes.
The watchdog said it is concerned that withholding database
backup will seriously hamper a school's ability to move to a new
provider.
  
    
    THE RESPONSE
    Reuters could not immediately reach ESS for comment. 
          

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by Tasim
Zahid)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))