Cartels and anti-competitive behaviour is an area of law that can be hugely damaging to your ability to do business.
A cartel is defined as an agreement between potential business rivals not to compete with each other. One obvious example is price fixing. The precise form and nature of the agreement may vary but the consequences can be severe for those found to have been involved.
Individuals or corporates that are found to have conducted themselves in such a way could find themselves facing a criminal investigation and prosecution.
Alternatively, the authorities may opt for civil action that could result in a substantial fine being imposed. And anyone who believes their business interests have been harmed by such behaviour could bring an action for damages.
Allegations of such behaviour can also attract the attention of a number of enforcement agencies in a number of countries. This makes it imperative that those in business ensure they are not involved in such behaviour.
If individuals or corporates believe they are being, or are about to be, investigated for such behaviour (or they suspect this type of wrongdoing is happening) they need legal representation from specialists in this field: specialists who have in-depth knowledge of the relevant law, who are used to dealing with the enforcement agencies involved and who know the business sector where the alleged behaviour was conducted.
It is only by seeking the best and most relevant advice that a swift, intelligent and appropriate response to such a situation can be devised and presented.
Conducting an internal investigation into the allegations, introducing enhanced prevention procedures and knowing how to self-report any findings of anti-competitive behaviour can result in more lenient treatment from the authorities. But such matters need to be planned and conducted carefully.
An informed and considered approach is also necessary if you suspect your business interests have been harmed by anti-competitive behaviour and you want to seek legal redress.
Rahman Ravelli has the lawyers with the necessary experience and internationally-recognised expertise to ensure you take the right steps to avoid the problems that alleged cartel behaviour can bring.
A cartel is an agreement or concerted practice between competing businesses that restricts competition. Common cartel behaviours include price-fixing, market sharing, bid-rigging, and limiting production or supply. Cartels are prohibited by Chapter I of the Competition Act 1998 and, where they have an effect on trade between EU member states, by Article 101 of the Treaty on the Functioning of the European Union (TFEU). Participation in a cartel is also a criminal offence under the Enterprise Act 2002.
The Competition and Markets Authority (CMA) is the primary regulator responsible for investigating cartels and breaches of competition law in the UK. Sector-specific regulators — including Ofcom, Ofgem, the FCA, and the Payment Systems Regulator — also have concurrent powers to investigate competition law infringements in their respective sectors. Criminal prosecution of individuals for the cartel offence is handled by the CMA and the Serious Fraud Office (SFO).
Section 188 of the Enterprise Act 2002 creates a criminal offence for individuals who engage in price fixing, market sharing, bid rigging, or limiting production or supply agreements between competitors. Conviction can result in up to five years' imprisonment and/or an unlimited fine. Directors found guilty of engaging in a cartel criminal offence can also be disqualified.
For businesses, financial penalties for competition law infringements can reach up to 10% of global annual turnover. Individuals can face criminal prosecution, director disqualification, and disqualification undertakings. The CMA can also impose behavioural and structural remedies. In addition, companies and individuals that have suffered loss as a result of anti-competitive conduct can bring civil claims for damages in the Competition Appeal Tribunal or the courts.
The CMA operates a leniency programme that allows companies and individuals involved in cartel activity to avoid or reduce penalties in exchange for reporting the cartel and cooperating fully with the investigation. The first party to come forward can receive full immunity from fines or prosecution. Subsequent applicants may receive partial reductions. Leniency applications are highly complex and must be handled with specialist legal advice from the outset.
You should immediately contact specialist investigation solicitors. During a dawn raid, you have the right to legal advice before answering questions, although you must allow investigators access to premises and documents covered by their warrant. You should not destroy, conceal, or alter any documents. Your solicitor will advise on the scope of the authority's powers, protect legally privileged materials, and help you formulate a coherent response strategy.
Yes. Individuals — including senior executives and employees — can face criminal prosecution for the cartel offence under the Enterprise Act 2002, with the possibility of imprisonment. They can also be subject to director disqualification orders of up to 15 years and can be required to give disqualification undertakings. Where a company is found to have infringed competition law, the CMA will often consider whether individual officers should face personal proceedings.
Competition investigations can trigger simultaneous civil, regulatory, and criminal proceedings across multiple jurisdictions. The CMA has far-reaching investigative powers including document production, compelled interviews, and dawn raids. Missteps in responding — including inadvertent destruction of evidence or mishandling of legal privilege — can have severe consequences. Specialist competition solicitors provide immediate on-the-ground support during raids and guide the entire strategic response from investigation through to any proceedings.
