SOUTH Derry construction giant FP McCann has lost its appeal against a £25.5 million fine imposed for its role in an alleged price-fixing cartel stretching over a seven-year period.
Following an investigation by the Competition and Markets Authority (CMA) lasting a number of years, McCann and two other firms were found last year to have infringed UK and EU competition law in relation to the supply of certain pre-cast concrete drainage products.
The watchdog found that the three companies were complicit in the illegal cartel in Britain from July 2006 to March 2013, when they agreed to fix or coordinate their prices, shared the market by allocating customers and regularly exchanged sensitive information.
The two other companies - Derbyshire-based Stanton Bonna Concrete and CPM Group in Somerset - admitted the infringement and agreed to pay fines imposed by the CMA.
But McCann, which is headquartered at Knockloughrim near Magherafelt, and which employs more than 1,700 people, appealed the decision on a number of grounds, focusing on the level of the fine imposed by the CMA.
At the appeal hearing, FP McCann did not challenge the finding that it had engaged in the infringing conduct, and its appeal was limited to the CMA’s calculation of the penalty.
But tribunal held that the penalty was "in all the circumstances, appropriate", and the fine of £25,449,676 will now be levied.
A CMA spokesman told the Irish News: "We welcome the judgment from the Competition Appeal Tribunal, which upholds our decision to impose a £25.5m fine on FP McCann Ltd for participating in an illegal cartel, reflecting the seriousness of the infringement.
"The tribunal’s judgment reinforces the need for companies to engage in active competition and not cheat by colluding with their rivals to fix prices or share out the market between them.
"We will continue to crack down on illegal cartels and impose significant fines to deter anti-competitive behaviour that harms consumers and the wider economy."
To put it in context, the fine - which is among the biggest ever imposed in Northern Ireland corporate history - amounts to more than the £18.2 million which FP McCann cleared in profit in 2019.
But the company is nonetheless hugely well capitalised, as has enjoyed a stellar period of growth over a prolonged period, with sales last year rising to £264m.
