Competition law compliance—benchmarking guide for staff

The following Risk & Compliance precedent provides comprehensive and up to date legal information covering:

  • Competition law compliance—benchmarking guide for staff

Competition law compliance—benchmarking guide for staff

Benchmarking is an important tool for our organisation. It is generally considered pro-competitive, if properly structured and conducted, as its aim is to enhance efficiency and lower overall costs.

However, because it commonly involves exchanging information between competitors, benchmarking also has the potential to facilitate anti-competitive communications or to provide an opportunity for collusion; there are therefore inherent competition law compliance risks in benchmarking activities.

As such, any benchmarking activities must be carefully designed and conducted, with advice and guidance from [insert, eg the legal team]. Prior discussion and planning with [insert, eg the legal team] is especially critical when the benchmarking activity involves direct contact or an exchange of information with competitors.

    1. 1

      Design

      Benchmarking activities must be designed to ensure they do not have the potential or appearance of being efforts to co-ordinate market behaviour and/or limit competition. Benchmarking must not be used, or appear to be used, as a means to: reach a consensus on price or other terms or conditions of sale or licensing; agree on wages, salaries or buying prices; facilitate a boycott of one or a group of suppliers, distributors, customers or competitors; facilitate an allocation of markets by territories, customers or products; agree on methods of operation; or restrain competition in the development of technologies or other competitive innovations.

      If the benchmarking involves a detailed review of

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