VIEWPOINT
the fines were reduced because Associated Lead Mills and BLM ultimately admitted their involve- ment in cartel activity. Following the investigation, which started in July 2017, the CMA found that four anti-com- petitive arrangements took place between October 2015 and April 2017. The CMA found that As- sociated Lead Mills and BLM had colluded on prices, exchanged commercially sensitive informa- tion, shared the market (includ- ing by arranging not to target certain customers and that they had arranged not to supply a new business that might disrupt their existing customer relationships and also compete with them). According to research commis- sioned by the CMA in 2018, 77% of UK businesses admit to not understanding competition law, with 79% of respondents stating they regularly meet with rivals in social situations.
It’s important that businesses understand the rules. An anti- competitive arrangement can be reached informally over a beer – it doesn’t need to be documented by a formal, written agreement. The informal nature of some business deals, coupled with the
lack of knowledge, means that there is a real risk of crossing the line without realising it.
An infringement of competition law can occur at any level in a supply chain, with anti-competi- tive practices ultimately depriv- ing customers of the efficiency, innovation and fair pricing that fair competition encourages. In addition, such practices can make it extremely difficult for other businesses that aren’t part of the arrangement to survive and grow. The CMA can investigate if it has reasonable grounds to suspect there has been anti-com- petitive behaviour. The investiga- tion itself can be stressful as the CMA can demand information (backed by sanctions of a fine if the request is not complied with), attend premises unannounced and require that questions are an- swered by any person connected with the business – from tempor- ary staff, through to the manag- ing director.
Prosecution potential If competition law is found to have been infringed, the con- sequences are serious and can damage a business as well as an individual’s career. Companies
77% of UK
businesses admit to not understanding competition law.
Research commissioned by the CMA in 2018
can be fined up to 10% of their annual worldwide turnover, while individuals can face prosecution, and directors can be disqualified. Businesses can also suffer reputa- tional damage.
In this case, Associated Lead Mills and BLM were handed reduced fines as they admitted their involvement in Cartel activ- ity. The amounts involved really do demonstrate just how serious the financial ramifications of an infringement of competition law can be.
Proactive compliance is es- sential. It’s important to make sure your business has a writ- ten competition law compliance policy and detailed staff training programme in place. A major risk factor is a lack of internal com- petition law awareness within a business, so these are vital to avoiding serious penalties.” Previously, the CMA had pro- visionally found that a third com- pany – Calder Industrial Materials Ltd – had become involved in one of the anti-competitive arrange- ments at a later stage. The CMA has now decided there are no grounds for action in respect of Calder and has closed its investi- gation into the firm. BMJ
CHANGING THE HEATING CLIMATE Karen Boswell, Managing Director at Baxi Heating
LATEST RECOMMENDATIONS from the Committee on Climate Change provide ambitious targets for the residential and commercial heating market whilst acknowledging that clear change is needed to meet these targets.
We recognise the role of sustainable heating technology in achieving these goals and welcome the plans for all new boilers to be hydrogen-ready by 2025, and the ambitions to achieve 5.5 million heat pump installations by 2030. We fully support these low carbon technologies; we are proud to be developing and testing one of the UK’s first 100% hydrogen boilers, and have recently launched our own
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comprehensive range of high- performance heat pumps. It’s our responsibility to tackle climate change to create a better world for future generations, and delivering cleaner and greener heating systems is fundamental to achieving the CCC’s ambitions. Last month, we announced Baxi Heating’s Sustainability Pledge, which outlined our plans to be carbon neutral in all of our operations by 2030, and a commitment to ensuring that every product we make from 2025 will work with low carbon energy.
Policy requirements We believe the CCC’s ambitions will require the backing of robust policy to make this roadmap a
reality. Plans for EPC Band C rating to be able to rent and sell homes, in addition to the phasing out of oil and fossil fuel boilers off the gas grid, are examples of this. A strong consumer education campaign will also be important for supporting homeowners and commercial building owners to make the necessary changes. There are several important publications expected in the near future, which should help to further shape how the UK will set out to achieve net-zero carbon emissions by 2050 and create an even clearer view. This includes the imminent Energy Whitepaper, BEIS Heat and Buildings Strategy and a UK Hydrogen Strategy.
We look forward to working closely with Government to continue developing our low carbon offering, helping us to meet the CCC’s ambitions and ensuring we play a key role in revolutionising the way we heat our homes and buildings in the future. BMJ
www.buildersmerchantsjournal.net January 2021
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