CitationDownload as .RIS
Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited
OFT fines recruitment agencies for a collective boycott and price fixing cartel
Article Type: Newsbriefs From: Structural Survey, Volume 28, Issue 2
Keywords: Cartel, Competition, Construction, Labour Price
The OFT has imposed fines totalling £39.27 million on six recruitment agencies for price-fixing and the collective boycott of another company in the supply of candidates to the construction industry. The two other recruitment agencies involved have been granted immunity from fines in return for exposing the cartel. The OFT has concluded that the six agencies all breached the Competition Act 1998. Heather Clayton, OFT Senior Director, said:
This is a serious breach of competition law and the level of fines reflects this. Cartels such as these can impact on other businesses, in this case construction companies, by distorting competition and driving up staff costs. Ultimately it is the consumer and the wider economy that loses out from such behaviour.