The Competition and Markets Authority has created a new guide to help SMEs understand competition law.
The Competition and Markets Authority (CMA) hope that the new guide will be able to help small businesses avoid being caught up in price-fixing, bid-rigging and market-sharing.
Research carried out by the CMA found that 77 per cent of UK businesses didn’t understand competition law. Competition law is a vital part of doing business in the UK and hopefully the guidance will enable business owners grasp the seemingly tricky law.
The research showed that even though 55 per cent of business owners knew that price-fixing was illegal, 27 per cent weren’t sure if it was okay to agree prices with rivals. 23 per cent thought it was okay to discuss prospective bids with competing bidders, and 29 per cent didn’t know that bid-rigging is illegal.
The CMA have produced a quick and simple guide to competition law, written case studies about firms that have broken the law, and made eight short films highlighting illegal practices. All of these are to help small firms to prevent them becoming a victim of crime and prevent them from committing a crime.
Companies that are found to break competition law can be fined up to 10 per cent of their annual global turnover and their directors disqualified from managing a company for 15 years. There are certain breaches of competition law that are criminal offences, and people have been known to be jailed for up to five years.
If you believe that competition laws have been broken, have been accused of breaking them yourself, or just need more information for your business, call the specialist business solicitors at Slater and Gordon for expert legal advice.
Call us 24/7 on freephone 0800 916 9052 or contact us online and we will call you.