Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

There are penalties for both notifying parties and third parties that supply false or misleading information to competition authorities. Section 117 of the 2002 Act makes it an offense to knowingly or recklessly supply false or misleading information to the competition authorities in connection with any of their functions under that Act. It is also an offense to give false or misleading informatio …

Criminal sanctions

Under the Act, the CMA's Board (which replaced the OFT in April 2014), or the SoS in public interest cases, may accept binding commitments from a merging business as an alternative to making a reference to the Panel of experts (which replaced the Competition Commission at the same time) (See OFT's 1122 Exceptions to the duty to refer and undertakings in lieu of reference guidance of December 2010). While “structural undertakings”, such as divestiture of assets, are generally the most appropriate remedy for competition problems in a merger situation, behavioral undertakings may, in some cases, provide a means of seeking to ensure that a merged undertaking does not behave in an anticompetitive manner, for example by following a particular course of action made possible by the merger.

Where the Board concludes that those commitments (undertakings in lieu of a reference) are a suitable remedy to the identified adverse effects arising from the merger, it will normally issue a public announcement stating the merger will be referred to the Panel unless satisfactory commitments can be obtained.

In order to give interested third parties an opportunity to comment, the Act provides for a two-stage consultation process for undertakings. The first consultation is for a period of at least 15 days, and calls for comments on the purpose and effect of the proposed commitments. This stage occurs at the time of the decision or, more likely, a short period afterwards. A second consultation period is only required if the originally proposed undertakings are modified in any material way, in which case there is a further seven day consultation period.

If in phase 2, the Panel concludes that competition will be lessened, it decides whether action should be taken by it or by others for the purpose of remedying, mitigating or preventing the substantial lessening of competition and what that action should be. In some cases, it might recommend that the merger not take place. It can also recommend that assets, shares or interests in shares already acquired be disposed of, or that the merger only be allowed subject to conditions.

Conditions and commitments - Divestiture

Like the OFT and Competition Commission, the CMA can apply to the High Court for enforcement of merger-related commitments and orders.

Civil sanctions

There are penalties for both notifying parties and third parties that supply false or misleading information to competition authorities. Section 117 of the 2002 Act makes it an offense to knowingly or recklessly supply false or misleading information to the competition authorities in connection with any of their functions under that Act. It is also an offense to give false or misleading information to any third party knowing that they will then supply it to the competition authorities. The penalties for breaching this provision are a fine, or a maximum of two years imprisonment, or both.

The Enterprise and Regulatory Reform Act 2013 also introduces a new power for the CMA to impose financial penalties on parties breaching interim measures of up to 5% of the aggregate turnover of the enterprises owned or controlled by that person (or such lower limit as the Secretary of State may, by order, determine). 

Global Competition Law

1424. Criminal sanctions

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Les notions juridiques connexes

1424. Criminal sanctions

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise