Businesses can no longer assume that competition law is something which only affects multi-nationals. Failure to comply with competition law can, amongst other things, lead to the imposition of substantial fines and make your agreements unenforceable. SMEs are now being fined substantial sums for non-compliance.
The provisions of the Enterprise Act 2002 which came into effect in 2003 introduced the possibility of fines and even imprisonment for directors and others engaged in cartels. The first prison sentences were imposed in 2008 and extradition to the USA for breach of their competition laws is also a risk if you trade there.
In addition, non-compliance can result in expensive investigations, a huge diversion of management time, third party damages claims and damaging publicity. LA can provide training to relevant people in your organisation and help you implement a compliance programme. Such steps should significantly reduce the risk of non-compliance and can lead to the authorities imposing reduced penalties in the event of a breach of the law.
Competition law should not just be seen as a threat but as an opportunity to help deal with unfair competition. Contact us if you think we might be able to help.
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