Broken Seal in EC Dawn Raid - a Costly Housekeeping Lesson

In one of its last judgments of 2010, the EU General Court affirmed the European Commission (EC) decision to impose a €38 million fine on the German energy provider, E.ON, for breaching an area sealed during an antitrust inspection or "dawn raid." This is the EC's first fine for such an action. The case against E.ON is one of several reflecting the EC's efforts to stop behaviour that may jeopardise its investigations under EU competition rules.

Some practical lessons can be drawn from the E.ON case for companies subject to an on-site inspection, where seals are placed at the premises of these companies, including that all persons with access to the concerned areas should be informed of the existence of the seals and the consequences of breaching a seal.