Associations of Undertakings (Trade Associations)

Associations of undertakings are bodies such as associations, unions, federations, chambers and similar structures that bring undertakings together. Article 4 of Law No. 4054 prohibits, alongside anti-competitive agreements, decisions and practices of associations of undertakings that restrict competition.

Which Decisions Are Risky?

Even if an association’s decision is not binding, for example a mere “recommendation”, it may be an infringement if it is capable of coordinating members’ conduct. Common risky practices include:

• Notifying members of recommended prices, minimum fee scales or rates of price increases,
• Steering members towards sharing customers, territories or tenders,
• Compiling and sharing current company-specific sales, price or capacity data with members; see information exchange,
• Making membership or entry into the profession harder without objective justification,
• Calling for a boycott of certain suppliers or customers.

Meetings

Industry meetings are where competitors come together and are among the highest-risk settings for competition law. Setting the agenda in writing in advance, keeping minutes, having a lawyer attend where necessary and not raising sensitive topics off the agenda are the basic rules.

Liability

In case of infringement, both the association and the participating member companies may be fined separately (administrative fines). Adopting a written competition policy is not legally required for an association, but it is the most effective way to show that the association and its members comply with competition rules. See also Competition Compliance Programme.