Archives
Bid-rigging and cover-pricing in the construction industry – an infamous case
The Office of Fair Trading (the predecessor to the CMA) found that between 2000 and 2006 the construction industry was rife with anti-competitive behaviour with over 100 companies engaging in bid-rigging and cover-pricing in nearly 200 cases.
The original fine was £129.5 million, but on appeal, the companies were eventually fined £63.6 million.
The OFT that the construction companies involved had engaged in cover-pricing and compensation payments. The compensation payments were found to be between £2,500 and £60,000, as a way to say “thank you” for losing the tender. This was one of the biggest cases of cover-pricing that arguably set the bar in terms of putting a stop to such practices being engaged in the future.
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CMA to open investigations into online dating company
The Competition and Markets Authority (CMA) announced on 31st October 2017 that it will be opening an investigation into an unnamed online dating operator over suspicions of breaching consumer protection laws.
The CMA believes that the suspected company may be engaging its customers into potentially unfair contract terms and conditions which may be distorting fair competition in the market.
In what is now a very popular market that’s growing and growing and making millions for the companies involved, competition should be key. So, if it’s being stifled, something needs to be done about it.
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The double-glazing spacer bar competition case (an example of blatant breaches!)
Here’s a look back at a serious and blatant breach of competition rules for you. In 2006, the Office of Fair Trading fined four suppliers of aluminium double-glazing spacer bars for taking part in rather clearly defined anti-competitive agreements.
The four parties had entered into anti-competitive agreements that breached both UK and EU law by breaching the Competition Act 1998 and the Functioning of the European Union. The guilty companies were EWS (Manufacturing) Limited; Ulmke Metals Limited; Thermoseal Group Limited; and Doube Quick Supplying Limited.
It was a big case at the time, with big fines imposed.
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CMA opens investigations into car rental comparison sites for alleged hidden costs
The Competition and Market Authority (CMA) has announced they’re opening enforcement cases against two car rental price comparison sites on suspicion that some of their practices may be anti-competitive. The decision follows the recent investigations the CMA has been working on with regards to hidden charges made by five major car rental companies.
Car rental price comparison websites can be very useful for customers to find the cheapest offer for hiring a car according to their specifications. However, this of course only works if the price comparison tool is fair and fully accurate.
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Model agencies fined £1.5 million by CMA for breaking competition laws
CMA has released an open letter to the creative industry after certain model agencies were fined £1.5 million for anti-competitive practices
The Competition and Markets Authority (CMA) have concluded their investigations into multiple top-modelling agencies for breaching anti-competition laws.
After issuing fines totalling more than £1.5 million for the five agencies and its trade association, the CMA has produced a report of its decisions and a warning via an open letter to those in the creative sector who participate in illegal price-collusion schemes.
The CMA also intends to continue its crackdown on cartels in U.K. businesses.
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CMA market study of digital marketing tools unearths possible anti-competitive behaviour
Digital comparison tools (DCT) can be very useful and convenient for consumers who want to easily compare the costs of things like insurance, credit cards and travel services, to name a few. For the most part, these services can theoretically increase competition as consumers can directly compare prices for the exact same product.
Whilst these sites are often free for the consumer to use, the companies listed on them usually have to pay for the privilege of their placement. With so many comparison sites out there, some companies may only choose to appear on a specific few sites, or perhaps none at all. On the other hand, some companies might pay more to bump up their ratings or directly put in a sponsored advert.
All of this means that the comparisons are not always clear and can be warped by listed companies’ input, and it is this issue the CMA is looking in to.
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There are reportedly over 21,000 care homes in the U.K., and most of these are operated privately with over half of all residents receiving funding from local authorities or through the NHS.
Worth around £15.9 billion a year, there is an incredible amount of money going into providing care for the elderly and infirm residents, so it’s certainly an industry to keep an eye on.
The CMA (Competition and Markets Authority) was made aware that certain practises may appear to result in the restriction of competition which is having an adverse effect on the quality of care and value for money in the care home industry. The CMA therefore launched a market study on 2nd December 2016 to analyse the trends in investments, costs and if there is enough money being generated.
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CMA finds no grounds for action in preliminary investigations into single-wrapped impulse ice-creams
The Competition and Markets Authority (CMA) has issued a ‘no grounds for action’ decision after initial investigations into a reportedly dominant company that supplied individually wrapped impulse ice-creams in the U.K.
Impulse ice-creams refer to individual ice-creams sold to be eaten immediately, rather than taken home.
Less than six months after investigations were first opened on 16th February 2017, the CMA are closing investigations into Unilever plc for suspected abuse of a dominant position.
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CMA investigating UK roofing materials sector for alleged anti-competitive arrangements
The Competition and Markets Authority (CMA) have opened initial investigations into the UK roofing materials sector.
At this point in the very preliminary investigations, no presumption of infringement has been made: “The CMA has not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objection to any of the parties under investigation.”
What the CMA will probably do at this stage is conduct investigations and carry out information gathering; which includes issuing formal or informal information requests where necessary .
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CMA reaches amicable conclusion over anti-competitive behaviour in auction services industry
The Competition and Markets Authority (CMA) have reached a resolution in their investigations over online auction services for alleged anti-competitive behaviour. ATG Media addressed the CMA’s concerns and will be committing to undertakings to prevent further behaviour that may be construed as anti-competitive in the future.
The CMA commenced investigations on the 22 November 2016 into the supply of live auction platform services available in the U.K. after two complaints were made. Both complaints alleged that ATG Media imposed certain practices that meant their bidders couldn’t use a cheaper competitor’s service.
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