Wigan-based sportswear chain JJB Sports is emerging as a "whistle-blower" over an alleged price-fixing cartel sports retail market.
The company has asked for leniency from the Office of Fair Trading (OFT), which visited its headquarters with warrants on Thursday morning.
JJB approached the OFT on January 30 in connection with a "suspected agreement or concerted practice to dampen competition in the sports retail market" between June 8, 2007 and March 25 this year - the period that former chief executive Chris Ronnie was at the business.
The company said it takes its obligations under UK competition law seriously and added that it is co-operating with the OFT investigation.
The competition watchdog said: "The OFT has today executed entry warrants at two addresses as part of an investigation into alleged anti-competitive conduct in the sports goods retail sector.
"The OFT will not be in a position to conclude whether it considers the law has been infringed until it has completed its investigation and assessed the available evidence.2
JJB Sports was granted a "marker" by the OFT in August which gives the firm immunity from any fines of up to 10% of its turnover.
In return, JJB must co-operate with the OFT, withdraw from any further participation in the alleged cartel and pledge ``not to act in bad faith''.
The company, whose shares recently fell 10%, said it may nonetheless be liable for third-party damages despite its granted immunity, although the cost to JJB of such claims is likely to be low.
The investigation puts JJB back under the spotlight less than six months after the company managed to avoid going bust with a last-minute rescue deal.
Newcastle United billionaire owner Mike Ashley is at the centre of the fraud investigation.
Sports World proprietor Sports Direct International - controlled by founder Ashley - and JJB Sports are both being investigated by the Serious Fraud Office.
The Office of Fair Trading (OFT) competition watchdog referred the firm to the criminal fraud investigators.
Between them, Sports Direct and JJB have leading positions in the replica football shirts and sportswear markets.
An SFO spokeswoman said: "The investigation is into suspected offences under the Fraud Act and the Enterprise Act."
The OFT said it raided two of the firm's properties on Thursday over "alleged anti-competitive conduct".
Mr Ronnie, a friend of Mr Ashley, bought founder Dave Whelan's stake in the Wigan-based retailer in 2007 with Icelandic investor Exista.
But he used the shares as security against the £190 million loan from Icelandic bank Kaupthing for the deal - Mr Ronnie was sacked in March after it emerged his 27.5% stake in the business was seized when the Icelandic bank collapsed
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