A first-of-its-kind report by law firm CMS has shown that CMA investigations are intensifying, with increased dawn raids and third-party tip offs
Law firm CMS has released a report titled UK Competition Law Enforcement: Decoding the CMA and CAT’s Decisions, showing an intensification of CMA investigations.
The report analyses competition law enforcement in the UK, including all of the Competiton and Markets Authority (CMA) investigations.
CMA investigations and dawn raids are becoming more frequent
Since the introduction of the Competition Act in 1998, the CMA has conducted 164 investigations and appeals to the Competition Appeal Tribunal. 50% of CMA investigations resulted in an infringement decision.
All of these involved some form of anti-competitive or concerted practice, most commonly bid-rigging, as well as a dawn raid in every construction related case.
Directors were also involved in 70% of these cases.
The stats show that as well as every construction case involving a dawn raid, the CMA are increasingly relying on dawn raids. 88% of construction CMA investigations have resulted in an infringement descision.
Cracking down on infringement
Brian Sher, head of competition & antitrust at CMS, said: “CMA investigations can have a devastating impact on the personal lives of those involved. Reputational damage can be the least of it. These probes are extremely intrusive, with serious real-life consequences often taking a significant toll on mental health and wellbeing.
“With upcoming changes like extending ‘seize and sift’ to domestic premises, this level of scrutiny is only set to intensify. It is imperative that directors are fully aware of their rights.
“With the CMA prioritising actions that directly prevent consumer harm, it’s no surprise that the consumer and retail sector has been in the regulator’s spotlight more than others.
“However, businesses across all sectors cannot afford to be complacent. As businesses compete for market share amid significant cost pressures and heightened regulation, the likelihood of investigations will only increase.”
