Category: Investigations
A brief overview of the 2013 Mercedes-Benz commercial vehicle dealers’ competition investigation
First published by Admin on January 19, 2018 in the following categories: Investigations and tagged with cartels
In June 2010 The Office of Fair Trading (OFT) launched an investigation into Mercedes-Benz commercial vehicle dealers based on suspicions that the Competition Act 1998 had been breached.
Almost three years later the OFT found that Mercedes-Benz and five of its commercial dealers had in fact breached the Competition Act, and were fined for engaging in illegal cartel activity.
The OFT found that, out of the five dealers, two agreed to include substantial margins when quoting customers as well as another two agreeing not to trade with customers in each other’s area.
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CMA has found evidence of cartel arrangements in the supply of precast concrete drainage products
First published by Admin on January 12, 2018 in the following categories: Investigations and tagged with cartels | cma
The Competition and Markets Authority (CMA) will be going ahead with their investigations into the supply of precast concrete drainage products industry over suspicions of cartel behaviour after reportedly finding enough evidence from their initial probes.
The case was opened on 15 April 2016 and the CMA has spent over a year obtaining vital information for analysis and review. The competition watchdog’s preliminary investigations have apparently proved fruitful as it announces its intention to continue the probes.
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The 2013 access and alarm systems competition breach in retirement homes
First published by Admin on January 05, 2018 in the following categories: Investigations and tagged with cover pricing | elderly homes
Retirement homes and care homes have been at the centre of competition breaches several times. The 2013 access and alarm systems case was a notable one…
In 2013, the Office of Fair Trading (OFT) fined four U.K. suppliers of access and alarms systems who had taken part in anti-competitive behaviour when supplying services to retirement homes.
The four companies were fined over £50,000.00 after an investigation that started in 2011.
The Office of Fair Trading investigated the behaviour of the four companies during a four-year period between 2005 and 2009. They found that all four companies had engaged in anti-competitive behaviour across this period.
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The Competition and Markets Authority opens two more investigations in the pharmaceutical sector
First published by Admin on December 29, 2017 in the following categories: Investigations and tagged with cma
Announced only days apart, the two Competition and Markets Authority (CMA) investigations will be looking into suspected anti-competitive agreements and conduct in the Pharmaceutical and Pharmaceutical Drugs sectors. The competition watchdog will be checking how companies conduct their business and looking into whether any of their practices are in breach of Chapters I and II of the Competition Act 1998, and Article 101 and 102 of related competition laws.
From October 2017 to April 2018, the CMA will begin its investigations and gather as much relevant information as possible. At this point, they will issue formal and informal requests for information, and if need be, the CMA will also attend state-of-play meetings with the investigated parties.
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Bid-rigging and cover-pricing in the construction industry – an infamous case
First published by Admin on December 22, 2017 in the following categories: Investigations and tagged with cover pricing
The Office of Fair Trading (the predecessor to the CMA) found that between 2000 and 2006 the construction industry was rife with anti-competitive behaviour with over 100 companies engaging in bid-rigging and cover-pricing in nearly 200 cases.
The original fine was £129.5 million, but on appeal, the companies were eventually fined £63.6 million.
The OFT that the construction companies involved had engaged in cover-pricing and compensation payments. The compensation payments were found to be between £2,500 and £60,000, as a way to say “thank you” for losing the tender. This was one of the biggest cases of cover-pricing that arguably set the bar in terms of putting a stop to such practices being engaged in the future.
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CMA to open investigations into online dating company
First published by Admin on December 15, 2017 in the following categories: Investigations and tagged with cma
The Competition and Markets Authority (CMA) announced on 31st October 2017 that it will be opening an investigation into an unnamed online dating operator over suspicions of breaching consumer protection laws.
The CMA believes that the suspected company may be engaging its customers into potentially unfair contract terms and conditions which may be distorting fair competition in the market.
In what is now a very popular market that’s growing and growing and making millions for the companies involved, competition should be key. So, if it’s being stifled, something needs to be done about it.
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The double-glazing spacer bar competition case (an example of blatant breaches!)
First published by Admin on December 08, 2017 in the following categories: Investigations
Here’s a look back at a serious and blatant breach of competition rules for you. In 2006, the Office of Fair Trading fined four suppliers of aluminium double-glazing spacer bars for taking part in rather clearly defined anti-competitive agreements.
The four parties had entered into anti-competitive agreements that breached both UK and EU law by breaching the Competition Act 1998 and the Functioning of the European Union. The guilty companies were EWS (Manufacturing) Limited; Ulmke Metals Limited; Thermoseal Group Limited; and Doube Quick Supplying Limited.
It was a big case at the time, with big fines imposed.
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CMA opens investigations into car rental comparison sites for alleged hidden costs
First published by Admin on December 01, 2017 in the following categories: Investigations and tagged with cma | comparison sites
The Competition and Market Authority (CMA) has announced they’re opening enforcement cases against two car rental price comparison sites on suspicion that some of their practices may be anti-competitive. The decision follows the recent investigations the CMA has been working on with regards to hidden charges made by five major car rental companies.
Car rental price comparison websites can be very useful for customers to find the cheapest offer for hiring a car according to their specifications. However, this of course only works if the price comparison tool is fair and fully accurate.
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Model agencies fined £1.5 million by CMA for breaking competition laws
First published by Admin on November 17, 2017 in the following categories: Investigations and tagged with cma | price fixing
CMA has released an open letter to the creative industry after certain model agencies were fined £1.5 million for anti-competitive practices
The Competition and Markets Authority (CMA) have concluded their investigations into multiple top-modelling agencies for breaching anti-competition laws.
After issuing fines totalling more than £1.5 million for the five agencies and its trade association, the CMA has produced a report of its decisions and a warning via an open letter to those in the creative sector who participate in illegal price-collusion schemes.
The CMA also intends to continue its crackdown on cartels in U.K. businesses.
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CMA market study of digital marketing tools unearths possible anti-competitive behaviour
First published by Admin on November 10, 2017 in the following categories: Investigations and tagged with cma
Digital comparison tools (DCT) can be very useful and convenient for consumers who want to easily compare the costs of things like insurance, credit cards and travel services, to name a few. For the most part, these services can theoretically increase competition as consumers can directly compare prices for the exact same product.
Whilst these sites are often free for the consumer to use, the companies listed on them usually have to pay for the privilege of their placement. With so many comparison sites out there, some companies may only choose to appear on a specific few sites, or perhaps none at all. On the other hand, some companies might pay more to bump up their ratings or directly put in a sponsored advert.
All of this means that the comparisons are not always clear and can be warped by listed companies’ input, and it is this issue the CMA is looking in to.
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