{"id":505,"date":"2017-07-07T14:14:33","date_gmt":"2017-07-07T13:14:33","guid":{"rendered":"https:\/\/www.competitionlawyers.co.uk\/blog\/?p=505"},"modified":"2017-07-07T14:16:18","modified_gmt":"2017-07-07T13:16:18","slug":"competition-infringement-supply-solid-fuel-products","status":"publish","type":"post","link":"https:\/\/www.competitionlawyers.co.uk\/blog\/competition-infringement-supply-solid-fuel-products","title":{"rendered":"Update: is there a competition infringement in the supply of solid fuel products?"},"content":{"rendered":"<p>In November 2016 the Competition and Markets Authority (CMA) launched an investigation into the supply of solid fuel products in the U.K.<\/p>\n<p>The investigation relates to Chapter I of the Competition Act (CA) 1998 that bans agreements made between two or more companies that prevent, restrict or distort competition within the U.K., and as a result may affect the trade or market within the U.K.<\/p>\n<p>We have <a href=\"https:\/\/www.competitionlawyers.co.uk\/blog\/suspected-anti-competitive-agreements-solid-fuel-industry\" target=\"_blank\" style=\"font-weight: bold;\">blogged about anti-competitive agreements in the solid fuel industry before<\/a>, and here is an update on the current situation.<br \/>\n<!--more--><br \/>\nIn March 2017, the decision was taken to <strong>continue with the investigation<\/strong>. As with all investigations, the CMA gives time to for all the necessary information gathering.<\/p>\n<p>There is due to be an update of the investigation by the end of July.<\/p>\n<p>It&#8217;s hard to come to anything conclusive when there&#8217;s not enough evidence to base the findings, but the CMA has decided to continue the investigation, which may mean they suspect something is afoot.<\/p>\n<h2>Types of banned agreements<\/h2>\n<p>The types of agreements that are prohibited under Chapter I are quite wide and include, but aren&#8217;t limited to:<\/p>\n<div class=\"well\">\n<ul>\n<li>Agreements which directly or indirectly fix purchase or selling prices, or any other trading conditions (this may include discounts)<\/li>\n<li>Agreements which limit or control production, markets, technical development or investment (this may include setting quotas)<\/li>\n<li>Agreements which share markets or sources of supply<\/li>\n<li>Agreements which apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage<\/li>\n<\/ul>\n<\/div>\n<p>If the suppliers of solid fuel and charcoal products are found to be involved in any of these agreements, it may cause higher prices and a less competitive market. If higher prices are implemented in the market, this could have a negative effect on the consumer as they may have less of a choice and may be paying more than they should be doing.<\/p>\n<h3>Penalties<\/h3>\n<p>If the CMA finds that the suppliers have breached competition laws, they can impose fines that are usually financial in nature. The CMA can impose a fine of up to a maximum of 10% of the company&#8217;s global turnover if the breach was committed internationally or negligently. It&#8217;s up to the CMA what they consider to be serious breaches, but usually market-sharing and price-fixing fall into this category.<\/p>\n<p>Moreover, if the companies aren&#8217;t compliant in the investigations or provide false or misleading information, they may be subject to imprisonment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In November 2016 the Competition and Markets Authority (CMA) launched an investigation into the supply of solid fuel products in the U.K. The investigation relates to Chapter I of the Competition Act (CA) 1998 that bans agreements made between two or more companies that prevent, restrict or distort competition within the U.K., and as a &hellip; <a href=\"https:\/\/www.competitionlawyers.co.uk\/blog\/competition-infringement-supply-solid-fuel-products\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Update: is there a competition infringement in the supply of solid fuel products?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[2],"class_list":["post-505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","tag-cma"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - 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