CMA updates competition law risk guide

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 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.

Click here for the risk guide.