CMA update: Mitie / PAE investigation

The Competition and Markets Authority ('CMA') has provisionally decided to close its investigation into suspected anti-competitive conduct in connection with the ongoing procurement processes run by the UK Government (the Home Office) for contracts to supply services at Heathrow and Derwentside Immigration Removal Centres (the 'HIRC & DIRC Procurement Processes'), on the basis that there are no grounds for action.

The CMA's investigation into the conduct of Mitie Group plc, Mitie Care and Custody Ltd (Mitie) and PAE Incorporated (or any other legal entity forming part of those undertakings) (PAE) (together 'the Parties'), was prompted by information received by the CMA which led to a reasonable suspicion that the Parties had infringed competition law when PAE withdrew from the HIRC & DIRC Procurement Processes. Following an extensive investigation, the CMA has provisionally decided that the balance of the evidence obtained indicates that PAE's decision to withdraw from the HIRC & DIRC Procurement Processes was unilateral, and not the result of an anticompetitive agreement or concerted practice with Mitie.

The Parties and the Home Office will now have the opportunity to consider the CMA's provisional decision and to respond to it. No conclusion should be drawn about whether or not there has been an infringement of competition law until the CMA has made a final decision. The CMA will carefully consider any responses it receives and will announce its final decision on whether to close the case in due course.