Eversheds International

Fraud and Financial Crime

Competition, cartels and price fixing

The challenges

The Enterprise Act 2002 criminalised cartel activity in the UK for the first time. Companies need to ensure they are not involved in dishonestly price fixing, bid rigging, or on the limiting of the supply or production or market share of particular goods or services.

The Office of Fair Trading is aggressively hunting down such behaviour and companies risk huge fines for any involvement in such activity and the bad publicity that such investigations bring. Their directors and officers risk severe personal penalties which includes imprisonment.

In 2007, the OFT issued £237m worth fines and executed raids on some of our largest companies including well respected household names. British Airways was fined £121m for price fixing fuel surcharges on transatlantic flights with Virgin Airways. Virgin Airways escaped penalty due to the fact they quickly took measures to whistleblow on the arrangement.

The OFT has also accused various drug companies of price fixing with respect to the sale of drugs to the NHS and they have accused 100 construction companies of price-rigging public sector contracts.

How we can help

Working alongside our highly experienced Ccompetition team, we can offer bespoke advice on the criminal aspects of an OFT investigation including the very important issues of early intervention and whistleblowing on such activity. Such early intervention can reduce the likelihood of financial and criminal penalties and reduce the negative publicity created by such investigations.