A new working group of international competition authorities has put companies involved in global supply chains on notice not to collude.
The working group is made up of competition authorities from the “Five Eyes” nations:
- The UK Competition and Markets Authority (CMA)
- The United States Department of Justice
- The Australian Competition and Consumer Commission
- The Canadian Competition Bureau
- The New Zealand Commerce Commission.
It will meet regularly to develop and share intelligence to detect and investigate suspected anti-competitive behaviour and collusion, using existing international cooperation tools.
The 5 competition authorities are making co-ordinated statements putting firms on notice that those attempting to use supply chain disruptions as a cover for illegal anticompetitive conduct, including collusion, will face the full force of the law.
In the UK that could lead to fines of up to 10% of global turnover, disqualification of directors and in some cases criminal prosecution.
The launch of the working group follows concerns about higher prices resulting from supply chain disruption across the economy.
The agencies are concerned that some unscrupulous businesses could take advantage of the disruptions to engage in anti-competitive collusion and practices that cheat other businesses and ultimately consumers.
Michael Grenfell, Executive Director of Enforcement at the CMA, stated:
People and businesses across the world have been facing higher prices for goods and for transporting them. While price rises can be legitimate, the CMA would be concerned if collusive anti-competitive practices are contributing to these rises or preventing prices from coming down
The CMA is ready to use its legal powers where it finds evidence that the issues in the supply chain might be caused by potential breaches of competition law.
