WIREDGOV

A man appeared at Westminster Magistrates Court yesterday to face a charge under section 188 of the Enterprise Act 2002, the criminal cartel offence.

Peter Nigel Snee was charged on 13 January 2014 following an investigation by the Office of Fair Trading.

Mr Snee has been charged with dishonestly agreeing with others to divide customers, fix prices and rig bids between 2004 and 2012 in respect of the supply in the UK of galvanised steel tanks for water storage. The alleged arrangements related to a number of businesses, including Franklin Hodge Industries Limited, Galglass Limited, Kondea Water Supplies Limited and CST Industries (UK) Limited. For more information, see the case page.

Mr Snee is due to appear at Southwark Crown Court on 4 February 2014 for a Preliminary Hearing.

Crime and Disorder Act 1998 reporting restrictions apply and the OFT is unable to publish further details at this stage.

The OFT is also conducting a related civil investigation into whether businesses have infringed the provisions of the Competition Act 1998.

NOTES

1. Under section 188 of the Enterprise Act 2002 it is a criminal offence for individuals dishonestly to agree to make or implement, or to cause to be made or implemented, arrangements which constitute certain types of cartel activity, namely price-fixing, limiting or preventing supply or production, market-sharing and bid-rigging. Individuals convicted of the cartel offence may be sentenced to up to five years' imprisonment and/or an unlimited fine.
2. The Competition Act 1998 prohibits, among other matters, agreements and concerted practices that have the object or effect of preventing, restricting or distorting competition in the UK or a part of it and which may affect trade in the UK or a part of it. Companies found to have infringed the Act may be fined up to ten per cent of their annual world-wide turnover.
3. No assumption should be made at this stage that a criminal offence has been committed or that the Competition Act has been infringed.
4. Anyone who has information about a cartel is asked to call the OFT cartels hotline on 0800 085 1664 or email cartelshotline@oft.gsi.gov.uk. Under the OFT's leniency policy a business that has been involved in a cartel may - in certain defined circumstances - be granted immunity from penalties or a significant reduction in penalty in return for reporting certain categories of Competition Act 1998 infringements and assisting the OFT with its investigation. Individuals involved in cartel activity may also in certain defined circumstances be granted immunity from criminal prosecution for the cartel offence under the Enterprise Act 2002. The OFT also operates a rewards policy under which it may pay a financial reward of up to £100,000 in return for information which helps it to identify and take action against illegal cartels.
5. In April 2014, the Competition and Markets Authority (the CMA) will become the UK's lead competition and consumer body. The CMA will bring together the existing competition and certain consumer protection functions of the Office of Fair Trading and the responsibilities of the Competition Commission, as amended by the Enterprise and Regulatory Reform Act 2013. The CMA, which is a non-Ministerial government department, was established on 1 October 2013 but will not be taking on responsibility for cases or other work until 1 April. See the CMA's home page for more information.