CMA updates competition law risk guide for managers
Posted: 15th September 2020
The latest guide from the Competition and Markets Authority (CMA), together with the Institute of Risk Management, features up-to-date case studies that draw out lessons learned, and provides examples of best practice.
It also shines a light on accountability, highlighting that it is the responsibility of directors to ensure their companies comply with competition law – and that risk professionals advising them must make sure they are aware of this.
It comes as the CMA secures its 20th disqualification of a company director in the past 4 years. One of the most recent examples involved the director of an estate agent who has been prevented by court order from being a director of any UK company for 7 years. This was due to his contribution to an illegal arrangement in which 6 estate agents in Somerset agreed to fix a minimum commission rate of 1.5% for residential estate agency services.
As well as imposing fines on companies for breaking competition law, the CMA is increasingly using its power to seek the disqualification of directors. This reflects a toughening of the CMA’s approach to competition law enforcement over the past year.
Alongside the new risk guide, the CMA has a ‘Cheating or Competing?’ campaign page which includes advice for businesses and their advisors to help them recognise, mitigate and report anti-competitive business practices.
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