CMA fines firm for concealing evidence

The Competition and Markets Authority (CMA) has levied a total of £50,000 in fines against the construction firm M&J Group and two of its employees for concealing a mobile phone and important documents during a critical inspection. This incident represents the first civil penalties imposed on individuals for obstructing evidence during an investigation. The CMA conducted the inspection at M&J’s premises under a court warrant as part of a broader investigation targeting 12 construction companies suspected of bid rigging.

The investigation aims to determine if these companies colluded inappropriately when bidding for contracts, including those awarded by private entities and public sector bodies, such as projects funded by the Department for Education’s Condition Improvement Fund (CIF). This fund allocates millions annually to support the refurbishment and repair of school facilities, ensuring both safety and functionality for students and staff.

Today's fines are specifically related to M&J's failure to comply with the CMA’s investigatory directions. These penalties should not be construed as indicating that competition law violations have occurred, as the investigation is still active. During the inspection, Barry Pirrie, M&J’s Estimating Director, directed Office Manager Tracey Woods to hide crucial evidence by removing a work mobile phone and relevant paperwork from the premises. Mr Pirrie also provided misleading information to CMA officials, claiming he did not possess a work mobile phone.

Although the hidden items were eventually returned later that day, the act of concealing evidence—no matter how brief—created potentially serious risks regarding the loss of relevant information and consumed significant investigative resources.

Since the conduct in question occurred prior to the introduction of the CMA’s enhanced enforcement powers in January 2025, M&J is subjected to penalties under the previous regime, which have lower maximum fines. As a result, the financial penalties were set at £20,000 for Barry Pirrie, £5,000 for Tracey Woods, and £25,000 for M&J Group.

The CMA's ongoing investigation into potential bid rigging falls under its broader efforts to combat anticompetitive behaviour in public procurement. Recently, the authority published a report advocating for more robust measures against bid rigging and introduced proposals aimed at enhancing detection, prevention, and deterrence.

These actions are supported by the CMA’s civil enforcement powers established under section 40A (1) of the Competition Act 1998. Notably, an individual can face a maximum penalty of either £30,000 as a fixed fine or £15,000 per day under the previous laws. In contrast, changes stemming from the Digital Markets, Competition and Consumers Act 2024 (DMCCA) mean that new maximum penalties could include 1% of a business's turnover or 5% of its daily turnover for noncompliance with investigatory requirements.

The CMA operates an informant reward policy, offering financial incentives of up to £250,000 for information that aids in identifying and addressing illegal cartels. Individuals possessing information about such activities are encouraged to contact the CMA’s cartels hotline directly.