OFT Dawn Raids - Are You Ready?
Thursday, March 29, 2007
by
Colin Miller
When the inspector calls – will you be ready? The Office of Fair Trading (“OFT”) continues to focus on cartels in the construction industry.
The OFT has indicated that it will continue to make the construction industry a priority for cracking cartels and other anti-competitive behaviour (Annual Plan 2006 – 2007).
The OFT has extensive powers under UK competition rules. The rules prohibit agreements which restrict competition with the UK. OFT powers include:
- turning up unannounced and carrying out “dawn raids” of your offices
- removing documents and computer records from your offices
- use of covert surveillance (informants and bugging devices)
- imposing fines of up to 10% of total annual turnover
- prosecuting individuals (penalties being fines and/or imprisonment)
The OFT has stressed that it will continue to impose heavy fines in cases of serious breaches of the rules such as sharing geographic markets and customers, price fixing and bid rigging.
Biggart Baillie will be pleased to advise on:
- whether your current practices might be anti-competitive and if so how to comply with the law;
- developing a compliance programme and training;
- how to apply for leniency;
- what to do in the event of a “dawn raid”
For further information, please contact Colin Miller.