The Competition and Markets Authority (‘CMA’) have just published a new edition of their Competition Law Risk Guide, a joint publication with the Institute of Risk Management. This new edition has director disqualification as a leading theme.
Competition law is designed to protect businesses and consumers from anti-competitive behaviour. The law safeguards effective competition in order to deliver open, dynamic markets and enhanced productivity, innovation and value for customers. All businesses must comply with competition law and there can be serious consequences for businesses and individuals, including directors, for non-compliance.
In simple terms, a ‘business cartel’ is where businesses agree not to compete with one another, and cartel enforcement is a CMA priority. The CMA’s enhanced capabilities to detect and investigate cartels increase the risk of detection and prosecution.
In his foreword to the updated Guide, CMA Chief Executive Andrea Coscelli draws attention to the fact that this Guide is being published after CMA recently announced another director disqualification - which takes the total number to 20. He also talks about the importance of business leaders taking personal responsibility and accountability for the operations they govern.
CMA note that they know the majority of businesses want to do the right thing and the Guide is intended to help senior leaders and their advisors get to grips with competition law, identify risky business practices and put robust plans in place to mitigate against them. The Guide features a number of new case studies with lessons learnt and practical tips to help businesses stay on the right side of the law.
To read more please click this link.