Two construction suppliers have been fined more than £15 million after they were found to have broken competition law, it has been revealed.
The case centres around Vp plc and M.G.F. (Trench Construction Systems) Ltd, both of which supply groundworks products to national construction firms.
According to the Competition and Markets Authority (CMA), it was found that the suppliers had “colluded illegally” to reduce competition and “maintain or increase prices”.
The investigation discovered that the firms had shared confidential information about pricing and strategically coordinated commercial activities to reduce risk. It was also found that the firms had challenged each other’s quotes deemed “too low”.
This activity had been going on for around two years before a third company was invited into the cartel but whistle blew on the firm’s dealings.
Under competition law, Vp plc was fined £11.2 million and M.G.F. (Trench Construction Systems) Ltd was fined £3.7 million.
Commenting on the investigation, Michael Grenfell, Executive Director of Enforcement at the CMA, said: “Today’s announcement shows that the CMA continues to crack down on illegal cartel behaviour and protect consumers. The CMA will not tolerate illegal conduct which weakens competition and keeps prices up at the expense of consumers.
“This is the fourth time in the last two years that the CMA has fined a cartel in the construction sector. It is essential that the sector, which is crucial to the success of our country’s economy, can benefit from a competitive marketplace to deliver value, innovation and quality.”
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