CMA Issues Fines For Groundworks Services Cartel In UK

• Published date: 14 January 2021
• Subject Matter: Corporate/Commercial Law, Anti-trust/Competition Law, Corporate and Company Law, Antitrust, EU Competition , Cartels, Monopolies
• Law Firm: Shepherd and Wedderburn LLP
• Author: Mr John MacKenzie and Scott Rodger

Has your company dealt with VP Plc or M.G.F (Trench Construction Systems) Limited at any time between 2011 and 2016?

Flash summary

Two significant players in the supply of groundworks protection systems in the construction industry have received significant fines from the UK's competition regulator for illegally colluding to fix their prices between 2011 and 2016.

Victims of cartels can claim damages against the conspiring companies where they have been overcharged.

Breach of UK competition law

On 17 December 2020, the Competition and Markets Authority (CMA) issued fines totalling '15 million to VP and MGF due to anti-competitive arrangements entered into by the companies. The companies colluded illegally to artificially maintain higher prices for their products, sharing confidential information on future pricing and commercial strategy. A third company, Mabey Hire Limited, was involved for a limited period of five months. However, due to the CMA's Leniency Programme and Mabey's assistance provided to the CMA, no enforcement action has been taken against this third firm.

VP and MGF supply groundworks products to construction firms involved in excavation works. The products protect construction workers while carrying out excavation works...