Any infringement of EU or UK competition law can have serious consequences. Both the UK and the EU authorities have the power to impose significant fines – up to 10 per cent of global turnover. In addition, directors of companies found to be in breach of legislation can be barred from directorships for up to 15 years.
Not only that, breaches of competition rules invariably hit the headlines creating lasting reputational damage for the organisation.
In the UK, the Competition and Markets Authority is encouraging businesses to put measures in place to comply with legislation while at the same time taking a more aggressive stance in prosecuting breeches of antitrust laws and as a result, the number of industries under review for suspected anti-competitive behaviour has increased.
While the legal framework may be clear, companies need to ensure that they have the right ethical culture and relevant practices firmly embedded. GoodCorporation’s Antitrust Framework can be used to help companies minimise competition risks by ensuring that the correct systems and processes are working on the ground.
The Framework can be used for internal self-assessment or for independent external assurance. It follows the methodology employed by our Business Ethics Standard creating an assessment process that gathers evidence for each practice and awards grades against a four-point scale.
It can be used to assess systems already in place or as a checklist for identifying what needs to be done and how best to put this into practice.