On 3 August 2011 an OFT criminal investigation into the agricultural wrapping sector, which covers plastic stretch film used to package and protect straw, hay and silage, was dropped due to a lack of evidence. This decision comes just over a year after an embarrassing defeat for the regulator in London's Southwark Crown Court, where a failure to provide sufficient evidence meant a criminal prosecution against British Airways executives was thrown out. Despite this further set back, the OFT continues to pursue criminal enforcement in two active cases: one in the truck market and one in the automotive sector.
The OFT's criminal investigation into the agricultural wrapping sector was launched in April 2010 after a business address in the West Midlands was searched by the OFT. The raid was conducted in conjunction with an ongoing European Commission civil investigation into the sector. In a statement upon closing the case the OFT said, "there is insufficient evidence for any individual to be charged with the [criminal] cartel offence." However nothing more has been said of the exact product market the OFT were looking into or of any of the individuals under suspicion.
British Polythene Industries ('BPI'), whose executives were believed to be involved in the OFT's criminal investigation, understandably welcomed the OFT announcement. The company remains however subject to the Commission investigation. Commission raids took place in April 2010 at the premises of BPI and Swedish company Trioplast, despite sanctions having recently been imposed in the sector. Further to those raids a request for information was sent to BPI in May 2011. There is currently no timetable in place for resolving the investigation.
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