Competition Watchdog Investigates Supply of Chemicals for Construction Industry

AN INVESTIGATION into suspected anti-competitive conduct in the supply of chemicals for use in the construction industry has been launched by the Competition and Markets Authority (CMA).

The CMA says it has reason to suspect anti-competitive behaviour has taken place involving a number of suppliers of the chemicals and some industry bodies.

Chemicals for Construction

The illegal behaviour relates to the supply of chemical admixtures and additives which are an essential ingredient for products like concrete, mortars and cement used in the construction industry.

The CMA is working closely with the European Commission, which has also launched an investigation into suspected anticompetitive conduct in the sector today. The CMA is also in contact with other authorities, including the United States Department of Justice, Antitrust Division.

Following a period of investigation and information gathering, the CMA may issue a statement of objections if it thinks that competition law has been infringed. However, not all cases proceed to a statement of objections, and at this stage no assumptions should be made about whether competition law has been broken.

The CMA investigation will involve issuing requests for information, interviews, searches of premises and taking away information to analyse it.

If the CMA considers that competition law has been broken, a ‘Statement of Objections’ is issued. This means that the evidence and findings are set out together with proposed actions and penalties for the offenders involved. At this stage the names of the parties involved are normally made public and have a right to reply before the CMA decides if action will be taken.

Under the CMA’s leniency policy, a business that has been involved in certain types of anti-competitive conduct may be granted immunity from penalties or a significant reduction in penalty in return for reporting cartel activity and assisting the CMA with its investigation. Individuals involved in cartel activity may also be granted immunity from criminal prosecution or even be paid up to £250,000 in return for information which helps it to identify and take action against illegal cartels.

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