17th Dec 2020 13:21
Vp PLC- Harrogate-based equipment rental firm - Together with MGF (Trench Construction Systems) Ltd, fined a total of GBP15 million by UK Competition & Markets Authority for breaking competition law in the supply of groundworks products to the construction industry. Vp is fined GBP11.2 million and MGF GBP3.7 million. CMA says it found the two companies "colluded illegally to reduce competition and maintain or increase prices" by sharing confidential information on their pricing and commercial strategy. The regulator says the collusion took place for nearly two years on and off over a period from 2011 to 2016.
"Today's announcement shows that the CMA continues to crack down on illegal cartel behaviour and protect consumers," says Executive Director of Enforcement Michael Grenfell. "The CMA will not tolerate illegal conduct which weakens competition and keeps prices up at the expense of consumers."
Vp says it had already provisioned GBP15.4 million with respect to the investigation. Adds it "fundamentally disagrees" with the CMA's conclusions and intends to appeal to the Competition Appeal Tribunal.
Current stock price: 756.73 pence, up 4.0% on Thursday
Year-to-date change: down 19%
By Tom Waite; [email protected]
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