Nike and adidas face cartel probe after axing supply to small shops

A decision by Nike and adidas to supply only major outlets has been referred to a government anti-cartel unit.

Small independent retailers rely on the brands to attract customers, and say that without them they could be forced to close.

London 2012 sponsor adidas and Nike, which sponsors the England football team, no longer supply outlets which sell less than £25,000 worth of their products a year.

The move has been roundly criticised, with former Olympics minister Tessa Jowell urging the two companies to reconsider.

The Office of Fair Trading’s cartels unit has now been asked to investigate the decision, which small businesses say is “cutting off their lifeline”.

Nick Mavrides, owner of Ace Sports in Kentish Town, has had accounts with the brands for the past 25 years.

Of the new minimum figure, he said: “This will have a catastrophic effect on my ability to trade and compete and force me to close thus depriving me my livelihood.” He has reported the matter to the OFT, which is now examining the complaint.

Investigators may examine whether Nike and adidas’s behaviour could be in breach of the Competition Act or Article 81 of the EC Treaty, or whether a criminal offence under the Enterprise Act has been committed.

In extreme cases anyone convicted of involvement in the most serious types of cartels can receive a maximum of five years’ imprisonment, or an unlimited fine.

Nike claims the move is intended to cut costs and improve consumer experience, while adidas, which gave David Beckham a £100 million lifetime contract, said supporting small shops was not efficient.