Under the Competition Act 1998 framework, once an investigation is underway, relevant material must not be falsified, concealed, destroyed, or disposed of. The framework gives the CMA the power to impose administrative penalties on companies and individuals who fail, without reasonable excuse, to comply with investigatory requirements.

Section 25B of the Competition Act 1998

Section 25B of the Competition Act 1998 provides the framework for penalties where a person fails, without reasonable excuse, to comply with a requirement imposed under the CMA's investigatory powers. The provision applies to both companies and individuals.

What the Law Prohibits

Relevant material must not be:

• Falsified — altered or misrepresented.
• Concealed — hidden or removed so investigators cannot find it.
• Destroyed — permanently eliminated.
• Disposed of — transferred, discarded or otherwise made unavailable.

The M&J Connection

The M&J case illustrates the consequences of evidence concealment during an inspection. The CMA found that a work phone and paperwork were removed from M&J's premises so that investigators would not find them, and that an individual made a false statement about a work phone. The result was £50,000 in combined administrative penalties.

Crucially, these penalties were for investigative non-compliance — not for the underlying conduct being investigated. The bid-rigging investigation remains open and no infringement finding has been made.