OfT fines defunct Mercedes dealer for competition law breaches

Date: Wednesday, March 27, 2013

The Office of Fair Trading (OfT) has issued a fine of £242,000 against former Mercedes-Benz commercial vehicle dealer H&L Garages for breaching competition law.

The retailer, which operated five sites across Yorkshire and north Linclonshire, fell into administration in December 2011 when it lost its Mercedes franchise and ceased trading.

The OfT said the distribution of vans between H&L Garages and Northside Truck and Van from 23 March 2007 to 26 January 2010 had infringed the Competition Act as had the distribution of trucks between the firms from 13 June 2008 to 26 January 2010.

A spokesman for the OfT said the watchdog had now joined the list of H&L Garages’ creditors.

The decision against H&L concluded the OfT’s investigation into Mercedes-Benz and five of its dealers over breaches of competition law that involved market sharing, price co-ordination and the exchange of commercially sensitive information.

In February the OfT fined Mercedes just under £1.5m, Cicely Commercials almost £660,000, Enza Motors £347,000 and Road Range more than £115,000. The fines included a 15% settlement discount because the companies admitted the offences. Northside escaped a fine under the OfT’s leniency policy having been the first to apply for immunity in return for assisting the OfT with its investigation.

H&L Garages did not settle with the OfT and therefore its fine did not include a 15% discount.

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