The Competition and Markets Authority (CMA) imposed a £2.5 million fine on Copart, a vehicle salvage services supplier, for breaching an enforcement order related to their acquisition of Hills Motors. The breaches involved operating the merged businesses separately during the investigation, as mandated by the initial enforcement order (IEO).
Despite the CMA’s clearance of the merger’s competition concerns, Copart violated the IEO by combining elements of Hills Motors with its operations in proposals submitted to three insurers. These breaches occurred both before and after the IEO was in effect.
The CMA emphasised the importance of interim measures in maintaining a fair merger control regime, highlighting that these breaches could have influenced the investigation’s outcome or hindered necessary corrective actions.
It was concluded that Copart’s senior management had knowledge or involvement in these significant breaches. Considering Copart’s size, financial standing, and the severity of the breaches, the CMA deemed the £2.5 million cumulative penalties appropriate.
Copart has been contacted for a response.
Sources fleetnews.co.uk CMA Penalty notice
