Cartels & Illegal Price Fixing

The Competition and Markets Authority (CMA) investigates suspected cartels which are a particularly damaging form of anti-competitive activity. A cartel is an agreement between competitors to fix prices, share markets, rig bids or limit output at the expense of the interests of customers.

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Prosecutions may only be brought by the CMA or the Serious Fraud Office against individuals.

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Individuals found guilty of an offence can face imprisonment, unlimited financial penalties and disqualification as director. Companies are only subject to the civil enforcement regime.

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The CMA and SFO are seeking cartel convictions. If a business finds out that staff have been involved in cartel conduct that can be devastating news. Corporates and individuals alike need to have a strategy and good advice to deal with these issues to avoid lengthy investigations which can cause huge financial, personal and reputational consequences.

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It is possible for companies and individuals to approach the CMA for ‘immunity’ or ‘leniency’ – which if granted depends on a number of factors. However, if you are thinking of co-operating with the CMA and engage in the leniency program it is essential to obtain specialist criminal law advice in the first instance.

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Companies should anticipate how they would respond an investigation where individuals are also prosecuted and review their policies and training programmes to mitigate the risk of anti- competitive behaviour. Individuals should be aware that criminal investigations and prosecutions can take years and can have a detrimental effect if accused.