Go Directly to Jail - In Business Summer 2002

01 July 2002

The government's Enterprise Bill is currently making its way through the committee stages of the House of Commons and will soon be law. The government is heralding the Bill as a major step towards making the UK the best place in the world to do business. Many businesses may disagree. Within the next few years the UK will have gone from having one of the most benign competition regimes to one of Europe's toughest.

The ability of the Office of Fair Trading to fine organisations up to 10 percent of their turnover is now well established. The focus for increased sanctions is now on punishing individuals. The Enterprise Bill proposes jail sentences of up to five years for individuals who dishonestly operate cartels, with several sanctions including director disqualification for up to 15 years.

Events on the other side of the Atlantic are enough to focus minds in the boardroom. Sotheby's chairman Alfred Tuabman is now appealing after being jailed for a year and fined $7.5 million for his part in fixing prices with Christies. In the UK it is intended that the OFT will work alongside the Serious Fraud Office which will bring prosecutions against individuals.

The Bill also aims to make it easier for victims of anti-competitive activity to claim damages and so we may see an increase in this remedy being sought in civil proceedings.

The message is clear; over the years through increased legislation businesses have had to develop procedures for dealing with matters such as health and safety and employment. Now a compliance procedure for competition must be added to the list, not only for the protection of the balance sheet but also for the liberty of its directors and managers.

For more information please contact Peter Hawkes, Senior Partner & Head of Dispute Resolution.
 

‹ Back

• © Furley Page LLP 2008
• | LLP
• | Terms and Conditions
• | Privacy Policy
• | Site Map
• | Accessibility