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Monday, 18 November 2019 11:14

CMA extends deadline for submissions in investigation into supply of groundworks products to construction sector

The Competition and Markets Authority (CMA) has extended the deadline for submissions in its continuing investigation into suspected anti-competitive behaviour in relation to the supply of groundworks products to the construction industry in the United Kingdom.

The CM, which first launched its inquiry in February 2017, has given additional time to the parties involved to provide written and oral representations and extended the period from October to December 2019.

In April this year the CMA issued a statement of objections setting out its provisional findings that 3 suppliers to the construction industry breached competition law by coordinating their commercial behaviour, in particular pricing practices. The CMA said the suppliers’ aim had been to reduce competition on price and strategic uncertainty, including through the sharing of competitively sensitive, confidential pricing and strategic information in relation to the supply of certain groundworks products in the United Kingdom.

The allegations concern M.G.F. (Trench Construction Systems) Ltd, Mabey Hire Ltd and Vp plc. The statement also covers to M.G.F. (Trench Construction Systems) Ltd’s parent company MGF Ltd and Mabey Hire Ltd’s parent companies Mabey Engineering (Holdings) Ltd and Mabey Holdings Ltd.

The investigation concerns suspected infringements of Chapter I of the Competition Act 1998 and Article 101 of the Treaty on the Functioning of the European Union.

The CMA said that at this stage no assumption should be made that any infringement has occurred. The recipients of the statement of objections will now have an opportunity to respond to the allegations. The CMA will consider any representations it receives before any decision is taken as to whether competition law has in fact been infringed.

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