Supply Chains Put on Notice against Collusion

COMPANIES INVOLVED in global supply chains have been put on notice not to collude by a new working group of international competition authorities.

Five competition authorities from the ‘five eyes’ nations (UK, US, Canada, Australia and NZ) are today warning firms that those attempting to use supply chain disruptions as a cover for illegal anticompetitive conduct, including collusion, will face the full force of the law.

In the UK that could lead to fines of up to 10% of global turnover, disqualification of directors and in some cases criminal prosecution.

Supply Chains

The warning follows concerns about higher prices resulting from supply chain disruption across the economy.

UK construction has been beset by supply chain disruption and rising materials costs since 2020. The agencies are concerned that some businesses could take advantage of the disruptions to engage in anti-competitive collusion and practices.

Michael Grenfell, Executive Director of Enforcement at the CMA, said: “People and businesses across the world have been facing higher prices for goods and for transporting them. While price rises can be legitimate, the CMA would be concerned if collusive anti-competitive practices are contributing to these rises or preventing prices from coming down.

“The CMA is ready to use its legal powers where it finds evidence that the issues in the supply chain might be caused by potential breaches of competition law.”

>>Read more about anti-competitive practices in the news