A review of the construction recruitment agencies competition investigation
Six construction recruitment agencies were found to be in breach of the Competition Act 1998 between 2004 and 2006 by creating a cartel in order to boycott another company, Parc UK, and fix the fee rates they would charge other construction companies as well.
The six companies reportedly met on five occasions where they agreed to not use Parc, who were a mediator between recruitment agencies and constructions companies. Parc was apparently putting pressure on the margins of the six construction recruitment agencies involved.
Read More
Multiple shipping companies admit to price-fixing agreements for their services
Wallenius Wilhelmsen Logistics (WWL) has pleaded guilty to price-fixing and was ordered to pay almost £70 million for breaching competition laws.
Three other companies have reportedly followed WWL’s footsteps and have also pleaded guilty.
Several former and current executives for WWL have been indicted on charges of anti-competitive behaviour over accusations of price-fixing for some of its international ocean shipping. Former executives were apparently charged in November 2016 along with a current executive as well.
Read More
CMA provides updated reports on investigations into the care home sector
The Competition and Markets Authority (CMA) has published a couple of reports concerning their investigations into the care home market in the U.K. The first is a final report on the general market, and looks at how elderly and vulnerable residents are being treated. The second consists of an order to stop care homes from overcharging families in upfront costs, fees and continuing to charge families when the resident passes away.
The care home sector has seen a fair amount of scrutiny in the past few years, and for good reason. These institutions take in the elderly and vulnerable to provide them with a home and a sense of community with peers. These people are the most susceptible to harm as their physical and mental states deteriorate; relying on carers to look after them.
Read More
After a year of making its preliminary probes, the Competition and Markets Authority (CMA) has decided that there are substantive grounds and evidence to continue investigations into the pharmaceutical sector for allegedly charging excessive and unfair prices for liothyronine tablets.
Liothyronine tablets are used to treat hypothyroidism. Without enough thyroid hormones, our bodies’ metabolism slows down, making us feel tired, depressed and cold, all the while putting the pounds on. Liothyronine isn’t the main drug used to treat hypothyroidism but a lot of people are not suited to the primary drug and can only take liothyronine.
The suspected players in the market may be distorting competition for the thyroid hormone drugs
Read More
Competition and Markets Authority determines TalkTalk and CityFibre appeals over BT leased lines
The Competition and Markets Authority (CMA) has made a determination after TalkTalk and CityFibre have allegedly been overcharged for BT leased lines.
Leased lines are “high quality, dedicated, point-to-point data transmissions services” for essential communication services. BT leases out these lines to other telecommunication provides like TalkTalk and CityFibre, but the control they have other the prices has been disputed by the two users.
Read More
A brief overview of the 2013 Mercedes-Benz commercial vehicle dealers’ competition investigation
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.
Read More
CMA has found evidence of cartel arrangements in the supply of precast concrete drainage products
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.
Read More
The 2013 access and alarm systems competition breach in retirement 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.
Read More
The Competition and Markets Authority opens two more investigations in the pharmaceutical sector
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.
Read More
Bid-rigging and cover-pricing in the construction industry – an infamous case
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.
Read More