Fines totalling over £1.38 million have been imposed on double glazing industry firms EWS (Manufacturing) Limited, Thermoseal Group Limited, Double Quick Supplyline Limited and Ulmke Metals Limited.

This follows an investigation into price fixing and market sharing in the aluminium spacer bar market.

The Office of Fair Trading has concluded that these companies participated in a cartel, in which they agreed to fix prices and share the market for aluminium double glazing spacer bars, in breach of the Chapter I prohibition of the Competition Act 1998. The infringement occurred during the last part of 2002 and was brought to an early end as a result of the OFT's intervention.

In line with the OFT's leniency policy Ulmke Metals Limited has been granted 100 per cent leniency in recognition of its cooperation with the OFT's investigation. In addition, Thermoseal Group Limited has been granted a 40 per cent reduction of its penalty, also under the leniency policy. The total fines imposed are therefore reduced to around £900,000.

The OFT's finding follows an earlier decision in November 2004, that prices had been fixed in the market for another double glazing raw material, desiccant, and brings the total fines for cartels in the double glazing industry to around £3.7m, reduced to around £2.5m by leniency.

The OFT's investigations into cartel activity in the double glazing industry form part of its wider enforcement activities in relation to the construction industry, one of the five priority areas identified in the OFT's Annual Plan. The OFT has previously issued five decisions relating to bid rigging in the roofing sector.

www.oft.gov.uk

Source

Glass Age