Competition
Competition law touches most of the commercial decisions a company makes day to day: from pricing to the design of a distribution network, from employee transfers to the information shared at an industry association meeting. Our work in this area runs in two directions: helping companies reach their commercial goals without breaching the rules, and defending them before the Competition Authority and the courts when a review or an investigation arrives.
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Frequently Asked Questions
Is sharing pay or hiring information with a competitor a competition law infringement?
Yes, it can be. In its 2024 Guidelines the Competition Board expressly addressed conduct in labour markets: sharing pay and benefits information with competitors, agreeing not to hire each other's employees, or setting pay jointly are treated as infringements. This conduct has the same consequence even when it is verbal or takes the form of a "gentlemen's agreement".
Can we set resale prices for our dealers?
Setting a minimum or fixed resale price is among the most serious infringements under competition law. Communicating a recommended price or setting a maximum price is possible, as long as it does not become a fixed price through pressure on, or incentives to, the dealer. In practice the infringement often arises not from the contract but from the sales team's correspondence with dealers.
Can the Competition Authority conduct an unannounced on-site inspection?
Yes. The Authority can arrive at a company without notice, examine books, documents and electronic data, and take copies. Obstructing or hindering an inspection leads to a separate fine, regardless of any infringement. Waiting for a lawyer to arrive may be allowed, but that wait cannot be used to delay the inspection, so employees need to know in advance what to do when inspectors arrive.
What happens if we discover we have been involved in an infringement?
In cartel cases, the company that is first to report the infringement to the Authority and meets certain conditions can obtain full immunity or a reduced fine (the leniency programme). After an investigation starts, settlement and commitment mechanisms are also available. Because the choice of route and its timing directly determine the fine, the matter should be assessed as soon as it comes to light.
We have suffered loss from a competition infringement. Can we claim damages?
Yes. A party harmed by a competition infringement can claim compensation before the civil courts. Where the loss results from an agreement between the parties or from their gross negligence, the judge can award up to three times the loss. The Authority's infringement decision is an important basis in such cases.
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Schedule a meetingPublications in this area
- Competition Law and Labor Markets 31.01.2024
