Supply of construction services competition investigation

First published by Author on October 17, 2019 in the following categories: Investigations Latest and tagged with cma | competition law | construction industry | investigations

The investigation started by the CMA (Competition and Markets Authority) earlier this year into the supply of construction services is now set to proceed.

The decision looks to have been made after an initial information gathering exercise that has been carried out since March this year.

Given the scale of this industry, it’s another important when it comes to ensuring that there’s healthy competition in place that allows consumers to pay fair prices. Not only is competition important for keeping prices down, but it also allows players in the market to innovate in terms of efficiency and lowering costs for both products and services alike.

This can all benefit the consumer.

Background to the supply of construction services investigation

The CMA started their initial investigation into potential competition law infringements in the supply of construction services earlier this year.

Between March 2019 when the investigation started, and last month, the CMA has been looking into the sector to see whether it’s worth pursuing a full investigation. The CMA had previously confirmed that they’ve been looking at potential infringements of Chapter I of the Competition Act 1998 (CA98). This relates to the prohibition of agreements or practices that can restrict or distort competition in the UK.

As is often stated at the start of these things, no assumptions were being made. The CMA will normally look into whether there may be grounds for a more formal investigation, and they can then decide whether it’s worth their time and resources for looking into matters further.

Investigation proceeds

Having conducted an initial information gathering mission, the CMA has now announced this month that they intend to proceed with a formal investigation into the supply of construction services sector.

Although we don’t yet know the full details surrounding the decision, this usually means that it’s worth their time spending more resources looking into the sector. This suggests that they may suspect potential infringements, but again, no assumptions can be made at all.

It may be that there’s no breaches of the law at all. But, where there’s any suspicion that there are competition infringements when it comes to the supply of construction services in the UK, the CMA must take a closer look.