Harrogate firm accused by watchdog of illegal cartel activity

By John Grainger
Published 16th Apr 2019, 18:50 BST
Updated 16th Apr 2019, 18:59 BST
The accusations are believed to relate to Vps groundworks division.The accusations are believed to relate to Vps groundworks division.
The accusations are believed to relate to Vps groundworks division.
A Harrogate firm is one of three major northern companies that formed a cartel to jack up prices in a breach of competition law, a watchdog has provisionally found.

The Competition and Markets Authority (CMA) said that equipment hire firm Vp plc, which is based at Beckwith Knowle, Wigan-based MGF Trench Construction Systems and Dewsbury-based Mabey Hire had shared confidential information on pricing and commercial strategy, as well as co-ordinating their commercial activities. It said Vp and MGF operated the cartel for nearly two years and Mabey took part for five months.

The alleged activities came to light after Mabey blew the whistle and confessed its behaviour. In return, it will not be fined.

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Michael Grenfell, the CMA’s executive director for enforcement, said: “These are three major suppliers of equipment used to keep construction workers safe. It is crucial that builders and their customers benefit from genuinely competitive pricing for this essential equipment.

“Everyone must follow competition law, which protects customers from being exploited and paying more, as well as encouraging companies to compete for business in other ways – through innovation, quality and service.