Competition law risk management guide—non-dominant companies
Produced in partnership with Andrij Jurkiw of Womble Bond Dickinson
Competition law risk management guide—non-dominant companies

The following Risk & Compliance practice note produced in partnership with Andrij Jurkiw of Womble Bond Dickinson provides comprehensive and up to date legal information covering:

  • Competition law risk management guide—non-dominant companies
  • Why you need to manage this risk
  • Top five priorities
  • 1. Failure by staff to understand requirements
  • Staff understanding—mini-action list
  • 2. Dealing with competitors
  • Dealing with competitors—mini-action list
  • 3. Agreements with customers, suppliers and distributors
  • Agreements with customers, suppliers and distributors—mini-action list
  • 4. Using language that can be misinterpreted
  • More...

Why you need to manage this risk

Article 101 of the Treaty on the Functioning of the European Union (TFEU) (and its UK national equivalent—Chapter I of the Competition Act 1998), prohibits agreements between undertakings and decisions by associations of undertakings and concerted practices that may affect trade (between Member States under Article 101 or within the UK under the Chapter I Prohibition) and which have as their object or effect, the prevention, restriction or distortion of competition.

Failure to comply with competition law requirements can have various consequences:

FinesThe European Commission's and Competition and Markets Authority's (CMA) principal tool for punishing anti-competitive activity is the imposition of fines on infringing companies. Each separate infringement of competition law may be punished with a fine, capped at 10% of your annual worldwide turnover.
Void and unenforceable agreementsWhere an agreement is found to infringe Article 101(1) or Chapter I, it will be void and unenforceable either in whole or in part.
Third-party damages actionsOrganisations found to have infringed (or suspected of having infringed) competition law may be subject to damages actions brought by or on behalf of claimants who have suffered losses as a result of the infringement.
Reputational damageCompetition law infringements attract public attention and scrutiny and may lead to significant reputational damage. More and more frequently this is translated into losses in share
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