and compliance Ann Pope Senior Director Antitrust 1 CA98 process - - PowerPoint PPT Presentation

CMA approach to the Competition Act 1998 and compliance Ann Pope – Senior Director Antitrust 1

CA98 process - pre-SO stage Case prioritised by CMA Impact on parties under but SRO signs off on s.25 investigation threshold being met Parties will be notified Case opening notice of case opening when published on Case Opening CMA uses formal .gov.uk information gathering powers, which may SRO responsible for Use of formal investigation powers: involve an 'State of any decisions on s26 info requests to parties; unannounced play' meeting s27/28 visits to parties’ premises - interim measures; inspection – likely to with parties - settlement; be significant request Evidence Case Team reviews and - commitments, for information to a gathering and considers evidence with oversight tight deadline. - Further information requests review (principally from issued as necessary Case and Policy State of play meetings Committee) provide opportunity for parties to put their If settlement side of the story agreed, case SRO decides to continue Stop/Go against settling with case to SO Further information party continues decision requests likely under agreed Case Team fills evidence gaps throughout streamlined 'State of and drafts the SO process play' meeting Parties asked to with parties assess information on file for confidentiality SRO authorises issue of SO Statement of Objections 2

CA98 process - post-SO stage Impact on parties under investigation SO issued to 3 Person Case Decision Group Parties have up to 12 parties appointed by Case and Statement of weeks to read and Committee Objections (SO) Parties consider the SO and granted evidence on the file access to file and make reps. SRO responsible for Usually an opportunity any decisions on to consider settlement - interim measures; (admit and get - settlement; reduction in penalty) Parties’ SO - commitments, Case Decision Group reviews parties’ written representations with oversight representations and attends oral hearing (principally from Parties may attend Case and Policy oral hearings (their Committee) If, in light of reps, Case Decision choice) Group minded to find infringement If settlement 'State of and impose penalty: Opportunity for reps agreed, case play' meeting - draft penalty statement issued and oral hearing on against settling Proposed with parties - parties make written & oral penalty party continues decision representations on draft penalty Procedural under agreed Adjudicator streamlined Case and Policy Committee report on process consulted on proposed decision on procedural infringement/penalty issues Final decision issued – Final decision public announcement of Decision may be appealed decision and penalty – up to 10% of world wide turnover 3

Compliance + reporting Promoting compliance drives reporting More Businesses competitive Comply markets Increased understanding of what’s illegal Businesses Enforcement report CMA Intelligence & Pipeline

Awareness of competition law • “Competition law” can seem abstract and complex • And businesses lack knowledge that certain behaviours can be illegal • We’ve developed short & simple material to promote a better understanding How well businesses think Businesses unsure whether they know competition law these activities were illegal IFF Quantitative Telephone Research: 1,201 respondents, senior sales people, January 2015

The benefits of compliance 1. Avoid anticompetitive conduct in the first place 2. Quickly identify conduct that does occur and potentially apply for leniency 3. May benefit from reduction in penalty – will require proof that compliance programme has been improved/introduced