Demolition boss fails in bid to overturn CMA ban for role in illegal cartel
The High Court has struck down the bid of a demolition boss to stay in his role, after he was found to have been part of an illegal cartel by the competition watchdog.
In a ruling handed down today, a bid was rejected from Nicholas Brown to stay at the helm of Brown and Mason Group.
The CMA struck him off after he was found to be “personally involved in 2 breaches of competition law affecting contracts for demolition services with a total value of over £30 million”.
One breach related to the Shell Building on London’s Southbank, and the other, the Lots Road Power Station in London.
The CMA said as part of the cartel agreements, so-called ‘compensation payments’ with a total value of £700,000 were paid to Brown and Mason by two competitors. He admitted taking a “central role” in this conduct in May last year, before in July, applying to continue to act as a director.
In a judgment today, the Court concluded that granting leave in this case “would be an overly great intrusion into the public benefit of this disqualification.”
Juliette Enser, the CMA’s Senior Director of Cartels, said: “Director disqualifications are a key tool for protecting the public – and making sure those at the top of the chain are held responsible if their companies breach competition law. Bid-rigging and other illegal, anticompetitive practices, mean that businesses and consumers can end up paying over the odds or receiving worse services.
“Personal consequences, such as director disqualification, are a powerful deterrent – something which the Court’s decision clearly recognises. By rejecting Mr Brown’s request, the Court’s judgment has shown that protecting the public should not be undermined.”
In May, Michael Grenfell, the CMA’s Executive Director of Enforcement, said: Company directors need to take personal responsibility for ensuring that their companies comply with competition law. People and businesses need to be protected from illegal anti-competitive practices. Company directors who fall short can expect to face the prospect of disqualification.