Vehicle salvage firm to appeal against £2.5m fine ruling

Vehicle salvage and recycling firm Copart is set to appeal a £2.5 million fine issued by the Competition and Markets Authority (CMA) in relation to its takeover of Hills Motors.

The CMA said the fine was for failing to comply with an initial enforcement order imposed by the CMA, which required Copart to maintain Hills as a separately operating business while its investigation continued to check whether competition in the vehicle salvage market would be restricted. 

The CMA's investigation closed in July 2023 with a ruling that it had no concerns of anti-competition. However in December the regulator said that it had found that although its initial order, imposed in August 2022, required Copart and Hills Motors to trade separately while under investigation, Copart had still conducted negotiations with three insurers on the basis of being a combined business during the period.

Copart's UK chief executive Jane Pocock told Fleet News that the CMA’s decision to issue a penalty notice is subject to appeal.

Pocock said: “In this case, during the period of the 12-month investigation Copart and our customers fully cooperated.

“Copart were the successful party on three large tenders and the CMA believe they were not explicitly informed of the contract awards.”  

However, Pocock argues: “The CMA even had a 'monitoring trustee' appointed and were in regular contact with our lawyers who had submitted copies of all tenders and communicated with all customers who were also in direct dialogue. So basis for the fine remains an ongoing situation."