The Dangers of Businesses Breaching Competition Law

Research published by the Competition and Markets Authority indicates that, although most businesses consider that it is ethically important to comply with competition law, there are relatively low levels of understanding of the law and compliance training is rare (particularly among smaller businesses).

Levels of awareness of sanctions and how to report anti-competitive activity are particularly low. The research also reveals that many businesses hold discussions with others in their industry (including about transactions and, in some cases, price), indicating potential risks of anti-competitive behaviour.

Competition law is designed to ensure that companies compete fairly with each other and failure to comply with it, can have serious implications for a business, including large fines. Certain serious breaches of competition law may also expose an individual to the risk of criminal prosecution and expose businesses to claims that may exceed any fines imposed on them.

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