CMA update: Mitie / PAE investigation

On 14 February 2023, the Competition and Markets Authority ('CMA') issued a decision 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, and having consulted with the Parties and the Home Office, the CMA has 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.