Three galvanised steel tanks suppliers have been fined over £2.7 million for breaching competition law after colluding with each other to share their market.

The Competition and Markets Authority (CMA) fined Franklin Hodge Industries and its parent company, Carter Thermal Industries, £2,015,135. In addition, Galglass was fined £587,926 along with its parent companies Irish Industrial Tanks Ltd and Kernoff Ltd, while KW Supplies Ltd was hit with a £22,248 fine.

Franklin Hodge, Galglass Ltd, KW Supplies and CST Industries (UK) each admitted to having collaborated with each other to share the market by dividing customers among themselves. Their collusion included fixing the prices of tanks and to rig bids for contracts between 2005 and 2012.

Overall, the aim was to increase profits by avoiding customers being able to negotiate the best deal through ‘playing' the competitors off against each other.

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The situation came to light after CST Industries (UK) Ltd and its parent company CST Industries Inc brought the arrangements to the authorities' attention and co-operated with the investigation. As a result, they have been granted immunity from fines under the CMA's leniency policy.

The CMA also found Franklin Hodge Industries, Galglass, KW Supplies and Balmoral Tanks further breached the law by exchanging information regarding their current pricing and future pricing intentions, thereby reducing uncertainty among the suppliers about their likely pricing intentions. This included a discussion of target price ranges for two tank sizes.

As a result, Balmoral Tanks has been fined £130,000 along with its parent company, Balmoral Group Holdings.

Stephen Blake, Senior Director of the CMA's Cartels and Criminal Group, said: "Any company that is approached to join a cartel, or become involved in anti-competitive arrangements, should immediately reject the approach clearly and unequivocally.

"It should also decline to participate in any discussions that involve the sharing of confidential and competitively sensitive pricing information."

Galvanised steel tanks are used for water storage in larger buildings, such as schools, hospitals and other commercial and public buildings, and supply the water used in fire sprinkler systems.

(LM/MH)