{"id":57485,"date":"2019-05-24T08:27:03","date_gmt":"2019-05-24T07:27:03","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=57485"},"modified":"2019-07-31T11:51:08","modified_gmt":"2019-07-31T10:51:08","slug":"construction-industry-cma-investigation","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-industry-cma-investigation\/57485\/","title":{"rendered":"Construction industry \u2018should brace itself\u2019 for results of CMA investigation"},"content":{"rendered":"

A construction\u00a0solicitor has warned that the construction industry should brace itself for the results of an ongoing investigation by the Competition and Markets Authority (CMA)<\/h2>\n

In March 2019 the CMA announced that it was investigating suspected anti-competitive behaviour<\/a> in the supply of construction services in the UK.<\/p>\n

George Crofton-Martin, a partner specialising in competition law and the construction sector at Furley\u00a0Page<\/a>, said: \u201cThe CMA has\u00a0conducted a series of dawn raids in search of\u00a0evidence of anti-competitive practices and cartel behaviour by a number of construction suppliers.<\/p>\n

\u201cThe ramifications of the investigation are likely to be far-reaching and the fines that could be imposed\u00a0have the potential to send shockwaves through the industry.\u201d<\/p>\n

Anti-competitive behaviour is illegal under the Competition Act 1998<\/a>, which bans companies from entering into agreements or concerted practices which are intended to prevent, restrict or distort competition within the UK.<\/p>\n

The penalties for anti-competitive behaviour are extremely serious. Aside from the reputational damage and loss of customer trust, businesses found to have acted anti-competitively can be fined up to 10% of their worldwide turnover for the financial year immediately preceding the infringement. They can also face claims for damages from third parties who have fallen victim to anti-competitive practices.<\/p>\n

Meanwhile, individuals found to have engaged in price fixing, market sharing or\u00a0bid-rigging\u00a0can themselves face unlimited fines, prison sentences of up to five years and up to 15 years disqualification as a company director<\/a>. These sanctions are in addition to any fines faced by businesses for falling foul of the Competition Act.<\/p>\n

Crofton-Martin added: \u201cThe CMA is really focused on construction\u00a0at the moment, and businesses operating in the sector need to make every effort to comply with the law, or face serious financial, reputational and criminal sanctions.<\/p>\n

\u201cEnsuring awareness of the law and the risks through a proactive compliance policy is the first step to protecting a business and its employees.\u201d<\/p>\n

The\u00a0first stage of the\u00a0investigation by the CMA is scheduled to complete in September 2019.<\/p>\n

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

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