Related Research Articles
A cartel is a group of independent market participants who collude with each other as well as agreeing not to compete with each other in order to improve their profits and dominate the market. A cartel is an organization formed by producers to limit competition and increase prices by creating artificial shortages through low production quotas, stockpiling, and marketing quotas. Cartels can be vertical or horizontal but are inherently unstable due to the temptation to defect and falling prices for all members. Additionally, advancements in technology or the emergence of substitutes may undermine cartel pricing power, leading to the breakdown of the cooperation needed to sustain the cartel. Cartels are usually associations in the same sphere of business, and thus an alliance of rivals. Most jurisdictions consider it anti-competitive behavior and have outlawed such practices. Cartel behavior includes price fixing, bid rigging, and reductions in output. The doctrine in economics that analyzes cartels is cartel theory. Cartels are distinguished from other forms of collusion or anti-competitive organization such as corporate mergers.
Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.
Collusion is a deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right. Collusion is not always considered illegal. It can be used to attain objectives forbidden by law; for example, by defrauding or gaining an unfair market advantage. It is an agreement among firms or individuals to divide a market, set prices, limit production or limit opportunities. It can involve "unions, wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties". In legal terms, all acts effected by collusion are considered void.
Construction is a general term meaning the art and science of forming objects, systems, or organizations. It comes from the Latin word constructio and Old French construction. To 'construct' is a verb: the act of building, and the noun is construction: how something is built or the nature of its structure.
Anti-competitive practices are business or government practices that prevent or reduce competition in a market. Antitrust laws ensure businesses do not engage in competitive practices that harm other, usually smaller, businesses or consumers. These laws are formed to promote healthy competition within a free market by limiting the abuse of monopoly power. Competition allows companies to compete in order for products and services to improve; promote innovation; and provide more choices for consumers. In order to obtain greater profits, some large enterprises take advantage of market power to hinder survival of new entrants. Anti-competitive behavior can undermine the efficiency and fairness of the market, leaving consumers with little choice to obtain a reasonable quality of service.
Bid rigging is a fraudulent scheme in a procurement action which enables companies to submit non-competitive bids. It can be performed by corrupt officials, by firms in an orchestrated act of collusion, or by officials and firms acting together. This form of collusion is illegal in most countries. It is a form of price fixing and market allocation, often practiced where contracts are determined by a call for bids, for example in the case of government construction contracts. The typical objective of bid rigging is to enable the "winning" party to obtain contracts at uncompetitive prices. The other parties are compensated in various ways, for example, by cash payments, or by being designated to be the "winning" bidder on other contracts, or by an arrangement where some parts of the successful bidder's contract will be subcontracted to them. In this way, they "share the spoils" among themselves. Bid rigging almost always results in economic harm to the agency which is seeking the bids, and to the public, who ultimately bear the costs as taxpayers or consumers.
Larsen & Toubro Limited, abbreviated as L&T, is an Indian multinational conglomerate, with interests in industrial technology, heavy industry, engineering, construction, manufacturing, power, information technology, military and financial services. It is headquartered in Mumbai, Maharashtra.
Broadmarsh is an historic area of Nottingham, England. The area was subjected to large scale slum clearance, creating large spaces used for regeneration. A shopping centre, car park, bus station and road complex created in the early 1970s cut-through the traditional thoroughfares from the city centre to the rail and canalside area. A large courts building was opened in 1981.
The Competition Appeal Tribunal (CAT) of the United Kingdom was created by Section 12 and Schedule 2 to the Enterprise Act 2002 which came into force on 1 April 2003. The Competition Service is an executive non-departmental public body which was created as a support body for the Competition Appeal Tribunal.
Morgan Sindall Group plc is a leading British Construction & Regeneration group, headquartered in London employing around 6,700 employees and operating in the public, regulated and private sectors. It reports through six divisions of Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration and Investments. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
This is a partial list of notable price fixing and bid rigging cases.
The FCC Group, formerly Fomento de Construcciones y Contratas, S. A., is a Spanish business group, based in Barcelona. The group is listed on the Spanish Continuous Market and was once part of the IBEX 35.
Amey plc, previously known as Amey Ltd and Amey Roadstone Construction, is a United Kingdom-based infrastructure support service provider.
Obrascón Huarte Lain, S.A. ; branded as OHLA Progress Enablers since July 2021, is a Spanish multinational construction and civil engineering company. The company is involved in infrastructure and commercial property construction, homebuilding and the operation of toll road and other transport concessions. In the latter, the group is particularly active in Mexico. OHLA also has a majority-owned American subsidiary called OHL USA which is based in College Point, New York.
BCSA Ltd is a trade association for the structural steel industry in the UK and Ireland. It lobbies on behalf of its members, and provides them with education and technical services.
The Comisión Nacional de los Mercados y la Competencia, abbreviated as CNMC, is a Spanish independent competition regulator responsible for enforcing competition law. It was established by virtue of the Spanish Competition Act. It was preceded by the Tribunal de Defensa de la Competencia until 1 September 2007.
The Commission of Inquiry on the Awarding and Management of Public Contracts in the Construction Industry was a public inquiry in Quebec, Canada into potential corruption in the management of public construction contracts.
Build UK is a representative organisation in the Construction industry of the United Kingdom. It was formed by the 2015 merger of the UK Contractors Group (UKCG) and the National Specialist Contractors Council (NSCC). Combining clients, main contractors, trade associations, and other organisations, it claims to represent over 40% of UK construction, with organisational priorities focussed on improving performance, increasing construction productivity, and taking a sustainable approach to skill development and retention in the industry.
SureserveGroup is the UK’s leading provider of energy and compliance services to the social housing sector, providing services to homes and businesses across the UK. It was founded in 1988, with headquarters in Dartford, Kent. As of May 2023, it employed around 2,756 staff in 33 UK offices.
The Competition Commission is the independent statutory body charged with regulating competition in Hong Kong. It was established under the Competition Ordinance, enacted in June 2012, which aims to prohibit conduct that prevents, restricts or distorts competition, and to prohibit mergers that substantially lessen competition in Hong Kong.
References
- ↑ "New demolitions headquarters unveiled by NFDC and NDTG". PBC Today. 4 July 2023. Retrieved 31 January 2024.
- 1 2 "About The NFDC". NFDC. Retrieved 2022-06-28.
- ↑ "NATIONAL FEDERATION OF DEMOLITION CONTRACTORS LIMITED(THE) overview - Find and update company information - GOV.UK". Companies House. Retrieved 2022-06-28.
- ↑ "Demolition contractors admit collusion and bid rigging". The Construction Index. 24 June 2022. Retrieved 31 January 2024.
- ↑ Lowe, Tom (29 July 2022). "Trade body could make demolition firms sign anti-collusion declaration". Building. Retrieved 31 January 2024.
- ↑ Stein, Joshua (23 March 2023). "£60m fines and director bans for contractors after demolition bid-rigging probe". Construction News. Retrieved 31 January 2024.
