{"id":55243,"date":"2019-04-09T08:05:50","date_gmt":"2019-04-09T07:05:50","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=55243"},"modified":"2019-07-31T11:53:00","modified_gmt":"2019-07-31T10:53:00","slug":"mabey-groundworks-cartel","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/mabey-groundworks-cartel\/55243\/","title":{"rendered":"Mabey Hire exposes groundworks cartel"},"content":{"rendered":"

The Competition and Markets Authority<\/a> (CMA) has provisionally found that three major suppliers of groundworks products to the construction industry broke competition law<\/h2>\n

The CMA is investigating MGF Trench Construction Systems Ltd (MGF), Vp plc and Mabey Hire Ltd.<\/p>\n

The CMA has provisionally found that the three groundworks businesses formed a cartel to reduce competition<\/a> and keep prices up. This involved sharing confidential information on pricing and commercial strategy and coordinating their commercial activities.<\/p>\n

In a Statement of Objections issued today (9 April), the CMA states its provisional view that Vp and MGF operated the cartel for periods totalling nearly two years and Mabey took part for a single period of 5 months.<\/p>\n

Groundworks products (including braces, props and sheeting) are used to protect excavations \u2013 such as those made for foundations or for laying pipes \u2013 from collapse and are important for keeping construction sites safe. The three firms supply these products for a range of major housing and road developments, railway line works and water pipe upgrades.<\/p>\n

The companies\u2019 behaviour came to light after one of the firms blew the whistle<\/a> and brought information about the conduct to the CMA\u2019s attention. Mabey has confessed to its role and will not be fined in accordance with the CMA\u2019s leniency programme \u2013 provided it continues to cooperate with the CMA\u2019s investigation.<\/p>\n

Michael Grenfell, the CMA\u2019s executive director for Enforcement, said: \u201cThese are three major suppliers of equipment used to keep construction workers safe. It is crucial that builders and their customers benefit from genuinely competitive pricing for this essential equipment.<\/p>\n

\u201cEveryone must follow competition law, which protects customers from being exploited and paying more, as well as encouraging companies to compete for business in other ways \u2013 through innovation, quality and service.<\/p>\n

\u201cThe CMA uses its powers vigorously and robustly to root out illegal cartels.\u201d<\/p>\n

The CMA\u2019s findings are, at this stage in its investigation, provisional and do not necessarily lead to a decision that the companies have breached competition law. The firms now have the opportunity to consider the detail of the CMA\u2019s provisional findings and respond to it.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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