COMPETITION LAW UK: Strict regulation of anti-competitive conduct by companies helps to promote and maintain market competition.
It is important to understand how competition law affects businesses – of all sizes. Protecting business competitiveness is crucial for enterprise.
As a business owner, you must follow the rules of competitive agreements. Common types of anti-competitive activity to avoid includes:
- Bid rigging, price fixing, cartels (e.g. restricting competition or agreeing not to compete).
- Misapplying or abusing a dominant position in the market.
You can report anti competitive behaviour to the CMA in the United Kingdom. CMA stands for the Competition and Markets Authority. Their role strengthens business competitiveness and prevents anti-competitive activities.
There are several ways of reporting anti competitive practices to different industry regulators. The penalties apply to all business that are breaking the law or for any situation that involves yourself as a business owner.
Penalties for Anti Competitive Activity
Anyone involved in anti-competitive activities is likely to face severe penalties. A business can get fine up to 10% of its worldwide turnover – as well as getting sued for damages.
Being found guilty of cartel activity involvement can result in a fine or a prison sentence up to five (5) years. The penalty for company directors can be a disqualification from being a director for up to fifteen (15) years.
Note: Contact the Competition Pro Bono Scheme or find a legal adviser if you believe your business is in breach of competition law.
Competition Pro Bono Scheme
Legal experts from CPBS offer free advice on competition issues. The scheme is set up to provide an independent source of advice for individuals and businesses. It may apply for anyone whose rights have been infringed or for those who may be infringing the laws of competition.
As a rule, there would be no charge if you get advice or representation from Bono legal work. Either a lawyer or a law firm will provide the work without receiving a payment.
ALSO IN THIS SECTION
Anti Competitive Practices
Understanding what types of anti competitive activities exist will help you avoid them. Among the most common are ‘cartels’ and abusing a dominant position in the market.
Competition Law Risk Management
There are several ways to work out if your business is at risk of involvement in anti-competitive activity. You can manage risk by setting up policies, putting guidelines in place, and organising staff training.
Report Anti Competitive Activity to CMA
There are different ways of reporting your concerns about breaches in competition law, such as a cartel. Find out how to report anti competitive behaviour to the CMA or to an industry regulator.