The Heathrow parking competition infringements case

First published by Author on December 14, 2018 in the following categories: Industry Latest Price Fixing Pricing and tagged with cma | price fixing | pricing

A hefty fine has been issued in the wake of the Heathrow parking competition investigation that drew to a conclusion a couple of months ago.

The Competition and Markets Authority (CMA) has issued a fine of £1.6m to Heathrow after they admitted to competition law infringements. The fine was originally £2m, but as a result of Heathrow’s cooperation and acceptance of wrongdoing, they received a leniency discount of 20%.

The investigation surrounds how parking charge rates were set in connection with the operator of Terminal 5 Hotel, Arora Group.

Heathrow parking competition infringements

The Heathrow parking competition investigation found infringements of the law that has resulted in a huge fine of £1.6m being issued.

Their behaviour has found to have restricted competition on parking prices. An agreement had been formed with Arora Group for in connection with the lease for the Sofitel Hotel at Terminal 5. A clause in the agreement enforced restrictions on the setting of parking prices for non-hotel guests.

Both companies were subsequently found in breach of important competition law. As Arora Group came forward and informed the CMA about the activity, they received full leniency and won’t have to pay a fine. Heathrow Airport will have to pay the £1.6m issued, although this was reduced from £2m because they cooperated and accepted responsibility for their behaviour.

CMA warns others after the Heathrow parking competition infringement finding

The CMA has gone on to warn others in the wake of the Heathrow parking competition infringement decision and subsequent fine.

Letters have been sent to other airports to make sure their pricing strategies are above board and do not breach vital competition law.

The power of the CMA fines is clear to see. In the Heathrow parking competition case alone they have issued a fine in the sum of £1.6m. This is a huge amount of money, and it’s synonymous with the sorts of fines we often see being issued by the CMA.

Fair competition is vital for the consumer. Companies who fall foul of the law should expect serious repercussions.