Construction Chemical Cartel Case Also Dropped by Competition Watchdog

THE CMA has announced it is closing its construction chemical cartel case, but it does not imply any of the parties involved have infringed competition law.

The competition watchdog says the “investigation no longer constitutes an administrative priority”.

The decision to end its probe into “suspected breaches” of competition law relating to the supply of chemical admixtures and additives for use in concrete, cement, mortars and related construction products in the UK, comes after fears that the CMA’s independent work is being hampered by political pressures and vested interests.

The CMA first launched the investigation in October 2023 because it said had reasonable grounds for suspecting a cartel between certain suppliers of construction chemicals and certain industry bodies.

Construction Chemical Cartel Case Also Dropped

The CMA’s decision today to drop the chemicals cartel case is despite the organisation fighting in the High Court to establish as a legal principle its right to force individuals to disclose evidence documents as part of cartel investigations.

Despite winning this case only last year, the CMA says it has to prioritise cases that “have the greatest impact across the breadth of its work”.

In coming to its decision, the CMA added that it, “considered several factors, including … its likely impact in terms of delivering benefits to consumers and deterring anti-competitive conduct, the likelihood of it achieving the desired impact, and the required resources.”

Extraordinary Decision

The decision follows the resignation of the Competition and Markets Authority chair, Marcus Bokkerink on Tuesday 21 January 2025. In what was seen as an ‘extraordinary decision’, government ministers reportedly forced the resignation as the CMA’s work was viewed as a potential obstacle to the economic growth that is Chancellor Rachel Reeves’ mission.

Rachel Reeves said Bokkerink’s ousting “[made] way for somebody who does share the mission and the strategic direction this government are taking.”

In a statement, Marcus Bokkerink warned against competition authorities becoming “vulnerable to short term expediency or vested interests”.

Former Amazon UK boss, Douglas Gurr takes over as interim CMA chair, as the organisation continues investigations into digital markets, including Apple and Google.

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