When we advise clients that a proposed restriction in a contract would be considered anti-competitive, the question that usually follows is one addressed by Georgina Laverack of the Competition and Markets Authority in a recent blog: What are the consequences of breaking competition law?
This blog, which promises to be part of a mini-series providing simplified information for businesses on competition law, reminds us of the key consequences that may arise:
- Undertakings can be fined up to 10% of their worldwide turnover for the previous business year.
- Individuals can face personal fines and prison sentences
- Individuals can also be disqualified from acting as a company director
- Third parties may bring an action for damages in the civil courts
- Businesses can suffer reputational damage if customers and/or other businesses decide to go elsewhere
- The time and costs to a business involved in dealing with an investigation are significant and divert resources from the day to day demands of running the business
At Brabners, we advise our clients on UK and EU Competition law issues in relation to proposed and existing commercial arrangements. If you would like a review of your distribution or other commercial agreements, please contact Victoria Trigwell for further information.
