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

(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)