The Fair Trading Commission (FTC) has drafted guidelines for the practice whereby businesses party to a transaction in a given market create and manage an exclusive list of third-party providers in complementary markets. The list of providers is often referred to as a panel and its use is widespread among commercial banks, insurance companies and mortgage banks, among others.
While panels are established ostensibly to maintain the quality of third-party providers, they also create an impediment to entry for third-party providers in complementary markets. The opportunity of a given third-party provider to operate effectively may be contingent on becoming a member of these panels, which may be governed by ambiguous or subjective criteria. Panels established in transaction markets, therefore, invariably limit the opportunity of otherwise qualified providers to participate in complementary markets.
The FTC previously circulated a Position Paper on the practice. The Commission has since taken into consideration feedback from the stakeholders and has drafted Guidelines to assist businesses to limit exposure to competition law enforcement. These Guidelines reflect the concerns of stakeholders while addressing the competition concerns associated with the practice of using panels.
Before finalising the guidelines, the FTC once again seeks comments from individuals or enterprises which may be directly or indirectly affected by the practice. Accordingly, the FTC invites comments on its “Proposed Guidelines Regarding the Use of Panels” generally, and the Practical Application of the Guidelines (page 9), specifically.
We invite you to send comments via email to THE EXECUTIVE DIRECTOR at [email protected] by September 19, 2025.
Click to access 2025.08.29-Use-of-Panels-Guidelines.-DRAFT.pdf