UK regulator joins five-nation effort against supply chain price hikes
The UK competition watchdog is teaming up with its counterparts in the US, Canada, Australia and New Zealand in a drive to detect and investigate collusion between suppliers or shipping groups to hike prices.
The Competition and Markets Authority said it was linking up with its fellow agencies in other “five eyes” nations after receiving “multiple complaints” from businesses about supply chains, where, for example, fees for shipping have soared by up to 10 times compared with pre-pandemic levels in the past two years. The CMA said that despite the complaints it was yet to find evidence of potential breaches of the law.
A new working group made up of the US Department of Justice, the Australian Competition and Consumer Commission, the Canadian Competition Bureau and the New Zealand Commerce Commission is planning to “meet regularly to develop and share intelligence to detect and investigate suspected anti-competitive behaviour and collusion”.
The agencies released a coordinated statement saying they were “putting firms on notice that those attempting to use supply chain disruptions as a cover for illegal anticompetitive conduct, including collusion, will face the full force of the law”.
It is understood the remit is broad, covering sectors including retail, healthcare and agriculture.
In the UK, businesses found to be colluding could be fined up to 10% of global turnover and directors could be disqualified or in some cases face criminal prosecution.
Michael Grenfell, the executive director of enforcement at the CMA, urged anyone aware of anti-competitive behaviour to contact the watchdog’s cartels hotline. He said: “People and businesses across the world have been facing higher prices for goods and for transporting them.
“While
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