Here’s the latest in the investigation into the suspected cartel arrangements in the supply of precast concrete drainage sector.
The investigation being conducted by the CMA (Competition and Markets Authority) was launched way back in 2016. Since then, a number of steps have been taken, and admissions of participating in cartel behaviour have been made at the end of 2018.
The final penalty amounts have yet to be concluded and issued, but based on the most recent update from the CMA, we expect to be seeing more updates soon.
Background of the supply of precast concrete drainage case
The CMA’s investigation into the supply of precast concrete drainage sector surrounds alleged cartel behaviour for a number of businesses.
In December 2018, two businesses along with some parent companies admitted to participation in an illegal cartel. They have agreed to pay fines, which will likely include a discount for the fact that they have admitted breaches of competition law instead of dragging things out and battling the CMA, which of course uses far more resources.
The businesses involved in the cartel admissions are reported to be:
- Stanton Bonna Concrete Limited, and parent companies Bonna Sabla SA, Consolis Finance SAS, Consolis SAS and Consolis Group SAS;
- SBC;
- CPM Group Limited.
It was SBC who reported the cartel behaviour to the CMA which means they can benefit from the leniency policy and may avoid paying a fine at all. There is also another company who are still being investigated, and they are FP McCann Limited. No admissions have been made by them.
Draft fines to come
The investigation into the supply of precast concrete drainage is set to see some fines in the very near future.
Last month, a draft penalty statement was issued, and between now and October, further representations are being made, and further information is being gathered.
The CMA has the power to set fines that can be in the millions in order to act as a deterrent against this kind of behaviour, and to ensure that fair punishment is issued to offenders. Cartels usually mean one thing and one thing only: more money to the companies at the expense of the consumers.
It’d good to see that businesses who have admitted their participation in cartel behaviour will be punished accordingly.