Tag Archives: competition law

Competition time – Weeknote #312 – 21st February 2025

Read this article: Competition law is a constraint to collaboration in HE but it need not be an impediment

While the notion of “radical collaboration” may present a potentially appealing way of responding to the challenges that the sector is facing, there is, however, a significant tension between the principles of such transformational integration and the principles of competition law. As things currently stand, many forms of greater integration between institutions, particularly in relation to curriculum mapping and sharing the provision of courses, would breach the competition rules.

I am no competition expert, nor am I a lawyer, but having read much of the advice and notes by the CMA on higher education, I have noted that the advice is very much focussed on consumer protection for students, and less about collaboration or collusion.

None of this is advice and is my opinions put here, mainly for me as a thinking exercise, but for informational purposes only.

If higher education is to collaborate more in the non-student realm, then in my view this would be unlikely to attract the attention of the CMA. If a university decides to outsource their IT support for example, this is not a competition or consumer law issue.

Where there is collaboration that would impact on the student, an institution could collaborate with other institutions for prospective students but could potentially come under consumer protection legislation if the changes would impact current students.

The CMA’s advice is very much aimed at the students already at university. There is also advice for institutions about treating prospective students fairly. Most of the published documents in relation to commitments from universities is in relation to universities policies on student non-tuition debt and academic sanctions. This kind of action is seen as an unfair contract between the student and the university.

Reflecting on this, I think the kind of issues that universities need to think about when it comes to student facing collaboration is what would be the impact on current students and what would be the impact on future prospective students.

The timeframe of any changes is critical. So, imagine a scenario where a number of institutions in a local area decide to collaborate on student provision. Instead of all the institutions delivering a course, only one will deliver it. If you implement that straight away, then you might find yourself in breach of the consumer protection law in relation to higher education as stated by the CMA. However if you undertook to do the implementation over three years so no impact on current students, though it would impact on prospective students. Obviously, there are also staff changes, but that is not a consumer protection issue.

There is very little on the CMA and Gov.uk website on educational collusion in relation to courses, but across the web there are many articles written by legal firms on the grounds where universities should be careful in relation to competition, for example this one. This article does provide a useful rule of thumb test.

The following four-step analytical framework should provide useful rule-of-thumb guidance on whether a particular arrangement might comply with the competition rules.

  • First, there is an objectively reasonable and justifiable aim that the participating universities are seeking to achieve.
  • Secondly, under the arrangement no unnecessary restrictions on competition are being imposed or accepted.
  • Thirdly, the proposed arrangement will lead to tangible benefits for students (or consumers of university services).
  • Finally, the proposed arrangement is the least restrictive means of achieving the objective and consumer benefits.

If the answers to these questions are all affirmative, then the arrangement may be compatible with the competition rules.

This is a complex issue, and these are just some thoughts from my reading around the subject.

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Photo by Annie Spratt on Unsplash

We saw more announcements of job losses in UK higher education. Highlighting the financial challenges the sector is facing.

Bangor University to cut 200 jobs amid £15m savings

Bangor University aims to cut about 200 jobs to make savings of £15m, its vice-chancellor told staff in an email. Vice-Chancellor Edmund Burke said the drop in international students, a rise in costs and the UK government’s changes to national insurance had left them needing to make “unprecedented” changes.

The University of South Wales (USW) also announced on Wednesday it plans to cut 90 jobs.

Attended a meeting with the DfE looking at the Collaboration for a sustainable future report we published.

There was a lot of work kicking off the collaboration project we are doing with UUK.

Continuing with my writing draft for higher education State of Activity report.

Researching and reading up on data standards for teaching and learning, and corporate systems. Realising that I know a lot less than I thought I did in this space.

Had a call with HESCA to discuss collaboration presentation at HESCA 25.