CMA secures ESS offer for eligible schools to exit contracts
Following an investigation by the Competition and Markets Authority’s (CMA), Education Software Solutions Limited (ESS) has committed to allowing schools to apply to exit longer-term software contracts a year early.
Schools wishing to apply must do so before 12pm on 10 February 2023.
Background
Further to our previous article in November 2022 relating to the consultation arising from the CMA investigation into ESS, the CMA has now published its decision to accept binding commitments offered by ESS to address the concerns about its possible breaches of anti-competitive practices.
By way of background, the CMA was concerned that customers of ESS (being education providers in England and Wales) had to move from one-year contracts to three-year contracts, without having sufficient time to make alternative arrangements with other management information systems (MIS) software providers.
The CMA felt that ESS was anti-competitive by effectively limiting schools’ ability to choose a MIS software provider and excluding its competitors.
Conclusion of the investigation
On 10 January 2023 the CMA concluded its investigation and noted the following:
“Where a School had genuinely considered switching providers but reasonably concluded that they did not have sufficient time to do so – they can apply to an independent adjudicator for a 12-month break clause. Schools can apply for a break clause until noon on 10 February 2023”.
How schools can apply for a break clause
If your School considered switching MIS software providers but concluded that there wasn’t sufficient time to do so, you should apply for a break clause to allow you to terminate your contract with ESS early here.
The government has indicated that any applicants will be notified by the independent adjudicator – Evelyn Partners – as to whether they have been successful by no later than 31 March 2023.
If you have any questions surrounding the changes, please contact Joanne Davison using [email protected] or 0191 211 7958.