Builder Jones Engineering has emerged as the second Irish company to be raided by local and European authorities in an investigation into possible breaches of competition law in the construction of data centres.
The European Commission is investigating alleged anticompetitive practices among the bloc’s data centre builders, focusing on deals between companies not to poach each other’s staff, it announced recently.
Sources have confirmed that EU and Irish Competition and Consumer Protection Commission (CCPC) staff recently raided Jones Engineering offices on Pembroke Road in Dublin as part of the investigation.
The raid on Jones Engineering’s premises took place last month, around the time that the European Commission announced that its investigation was under way.
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Jones is the second Irish company named as a target of competition law investigation raids. Sisk, another leading construction business, confirmed recently that it was co-operating fully with the CCPC and the commission. Jones Engineering refused to comment.
The commission has not clarified if its investigation covers activities in more than one EU member state. Both Irish companies have worked on data centre projects in other European jurisdictions.
Jones works in the sector spans 19 countries in Europe and the Middle East, according to its website. The site adds that it cannot “disclose any project details” out of respect to clients. Other EU countries where it has businesses include the Netherlands, home to its European HQ, Belgium, Denmark, Germany and Sweden.
More than half its €1 billion-plus revenues come from operations outside the Republic.
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European and Irish competition law enforcers have wide-ranging powers to inspect or raid business premises and to take equipment, including computers, laptops and phones that may contain evidence.
The commission did not say which Irish companies it raided, nor where those raids took place, but noted that it had confirmed that it was investigating data centre construction.
“Unannounced inspections are a preliminary investigatory step into suspected anticompetitive practices,” noted a statement. “The fact that the commission carries out such inspections does not mean that the companies are guilty of anticompetitive behaviour, nor does it prejudge the outcome of the investigation itself.”
“The commission respects the rights of defence, in particular the right of companies to be heard in antitrust proceedings.”
The commission suspects businesses in data centre construction could have violated EU competition rules by colluding on “no-poach” agreements — illegal deals in which companies agree not to hire or pursue each other’s employees.
There is high demand in the Republic and elsewhere in Europe for qualified professionals in construction, particularly in specialised fields such as data centre building.
Jones Engineering, led by chief executive Stephen McCabe, expects turnover this year will hit €1.2 billion from about €1 billion in 2023, according to recent reports. The company made the prediction after publishing figures showing that profit last year almost doubled to €71 million from €39 million.
Jones is owned by US private equity business Cathexis and is a specialised contractor offering mechanical and electrical engineering and other services to clients in the food, drink, pharmaceutical and technology industries. In this State, it has worked for Guinness, PepsiCo, Pfizer and Johnson & Johnson among others.
The commission says there is no deadline to complete its inquiries. Their duration depends on the complexity of the case, companies’ co-operation and the exercise of their rights to a defence.
European and Irish laws ban businesses from engaging in a wide range of anticompetitive practices. Conviction results in fines and other penalties.
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