Monopoly yes: changes no
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• The Monopolies and Mergers Commission has ruled that a complex monopoly exists in the servicing and callibration of exhaust gas analysers. However, it concludes that the monopoly does not operate against the public interest and ii will not act to end the practice.
Named in the report were VI. Churchill, FKI Crypton, FKI Transervice, Lucas Service UK, Sun Electric and H Young (Operations).
The investigation was started after complaints that certain practices by the manufacturers were making it difficult for independent operators to service and calibrate this equipment. The MMC points to "a lack of significant evidence of high prices or excessive profits or customer dissatisfaction" as evidence that the practice is not against the public interest.
While no action is planned, the MMC did make recomendations to prevent a monopoly. Among these are: • Relevant government departments should analyse calibration data to monitor each EGA and so vary the calibration intervals; • EGA suppliers should publish specifications of service items, such as filters, to allow competing suppliers to make them; • Equipment specifications should be published for new or changed MoT requirements far enough in advance to allow suppliers to inform potential purchasers about servicing costs.