German Regulator Highlights Antitrust Risks Associated With The Use Of Industry Initiatives For Supply Chain Due Diligence

The EU's Corporate Sustainability Due Diligence Directive (CS3D) stresses that industry initiatives (next to multi-stakeholder initiatives) can constitute helpful tools for allowing covered companies to fulfill their obligations to identify, mitigate, and prevent adverse impacts on human rights and certain environmental standards under the CS3D. Guidance (currently only available in German) recently published by the German regulator (Federal Office for Economic Affairs and Export Control, BAFA) responsible for the enforcement of the German Supply Chain Due Diligence Act (SDDA) serves, however, as a reminder that industry initiatives in which companies cooperate in the area of supply chain due diligence raise complex questions under applicable antitrust laws. Companies cooperating with competitors need, in particular, to be mindful of the strict standards as regards the exchange of sensitive information among competitors established inter alia by EU competition law