background image
Complying with Competition Law
14
risk breaching competition law to increase sales? Are our
bonuses blinding our employees to the importance of
competition law compliance?"
·
Monitoring and review
Once your compliance programme is up and running it is
important to continually monitor and review how it is
working. It is a good idea to include it as a management
function and to report on it regularly; for example,
department heads should regularly sign a declaration (e.g.
annually or half yearly) that they and their respective
departments are operating in compliance with the law.
Monitoring is important to establish whether the
programme is working well and that it is properly
supported within the organisation. It is also important to
see if the measures you put in place are effective in
preventing infringements of competition law and from time
to time to make sure that the risks have not changed.
The process of introducing and running an effective competition
law compliance programme can best be described as a virtuous
circle, looking something as follows:
There are a number of steps that we can suggest that might
help you when setting up a competition law compliance
programme.
Stage 1: Analysis and risk assessment
The first step towards an effective compliance programme for
any business should be a comprehensive self assessment
exercise. This identifies and assesses the risk that you and or
your business might breach competition law.
The basic aim is that you fully understand your business
including its markets and culture and to analyse the business'
agreements, processes and practices and to identify specific
aspects of competition law that may come into play.
Sometimes the activities of sales and marketing departments
can give rise to problems in the area of compliance with com-
petition law. The reason for this is that staff from sales and
marketing departments often interact with competitors, either
directly or indirectly (through customers or suppliers). Commercial
pressure on staff such as the need to earn commission and
chasing targets can at times become too important and can
lead staff to sidestep compliance and to take the easier, illegal
route to success by colluding with competitors on price or the
allocation of customers or markets. For example, the Authority
discovered in the minutes of a meeting of cartel members in
the Citroen Car Dealers case, the following quote:
"The President appealed to all Dealers to work together in a
spirit of communication and co-operation and trust and
to
make profit for themselves and not for the customer."
Guide to drafting a
competition compliance
programme
Risk
assessment
Monitor &
Review
Planning
Implementation
& Training