The consequences of a competition law violation extend beyond the nullity of contracts and exclusion from participating in public tenders. Rather, the company faces heavy fines, claims for damages, and, in some countries, criminal prosecution of individual employees. It makes no difference whether the violation is committed by a large or small company.

It is often difficult for the affected companies and their employees to recognize that they are violating competition law. Once conduct relevant under competition law has been identified by those involved, the question also arises as to how to proceed. A compliance framework can help companies identify conduct relevant to competition law, avoid missteps, and properly address any violations.

Compliance frameworks must be tailored to each company’s specific needs

When creating a compliance framework, it must be individually adapted to each company. It is essential to ensure that, on the one hand, violations can be detected and remedied early on, while, on the other hand, free economic activity is not unduly restricted.

A guide from BusinessEurope outlines typical violations of competition law. The European umbrella organization of the BDI explains the key components a compliance framework should include and how such a framework can be implemented even in small and medium-sized enterprises.