The Competition & Markets Authority (CMA) has imposed fines totalling more than £9 million on two of the UK’s largest suppliers of rolled lead, for breaking competition law.
Following an investigation into suspected cartel conduct, the CMA found that Associated Lead Mills (ALM) and H.J. Enthoven (trading as BLM British Lead), had broken the law by entering into anti-competitive arrangements.
Both firms admitted their roles in the anti-competitive practices earlier this year, and now face fines of £1.5 million and £8 million respectively.
Previously, the CMA had provisionally found that a third company, Calder Industrial Materials, had become involved at a later stage in one of the arrangements, but it has now determined that there are no grounds for action in respect of this firm. The CMA has therefore closed its investigation in relation to this company.
The CMA’s findings follow a thorough review of the evidence, including the written and oral representations submitted by the businesses.
According to the CMA, the four anti-competitive arrangements took place between October 2015 and April 2017, and included colluding on prices, sharing the rolled lead market by arranging not to target certain customers, and arranging not to supply a new business because it risked disrupting the firms’ existing customer relationships. Each of the arrangements also included exchanges of commercially sensitive information.
Michael Grenfell, executive director of enforcement at the CMA, said: “These companies knowingly entered into illegal arrangements, restricting competition between them. Such anti-competitive arrangements tend to inflate prices and cheat customers out of a fair deal. The CMA does not tolerate such behaviour.
“Construction is a sector firmly under our spotlight and if businesses break the law by entering into anticompetitive arrangements, they run the risk of large fines.”
NFRC launches supplier membership investigation
Following the CMA’s final judgement, the NFRC has confirmed that it will be launching an investigation into two of its supplier members, Associated Lead Mills (ALM) and BLM British Lead.
Commenting on the announcement, James Talman, chief executive of the NFRC, said: “NFRC stands for roofing excellence and in no way tolerates anti-competitive practices amongst its membership. Now the CMA has made its final judgement, and all the evidence is available to us, we will refer this case to our risk committee to consider the behaviour of the two members involved, in light of our code of practice.
“The CMA has given a clear message that construction is very much in the spotlight and any firms who are found to undertake anti-competitive arrangements run the risk of large fines. We hope to work with the CMA to ensure the roofing industry is fully aware of competition law and understands the consequences of non-compliance.”
 and H.J. Enthoven (trading as BLM British Lead), for breaking competition law.){kind=link}