Thursday, 29 April 2021

CMA blog on cartels in the construction industry

 


The Competition and Markets Authority has published a blog on cartels in construction.

The blog comes as a reminder to the construction sector of the importance of competition law compliance.  It also sends a sharp message to directors of construction firms to lead by example and be aware of how the company is complying with its competition law obligations.

 

The competition law scrutiny of the construction sector is well documented. The CMA has  imposed competition law penalties of £67 million in the last five years in cases involving concrete drainage, groundworks, office fit-out services, galvanised steel tanks and roofing materials.  The CMA has also secured disqualification of 11 directors for their involvement in competition law breaches.  In the concrete drainage cases, two directors were disqualified for 11 and 12 years being the longest periods that the CMA has secured for disqualification up to now.  The company received fines of over £25 million.

 

The sector has been plagued by competition law problems in the past.  The CMA hopes that by engaging directly with businesses to remind them of their obligations will bring the message home.

 

Cartels in construction – CMA message for business leaders - Competition and Markets Authority (blog.gov.uk)

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