Competition Compliance Program As A Mitigating Factor

1. Introduction

It is a common practice that companies become familiar with competition law and aware that they are violating competition rules only once they are faced with the investigation and fines imposed on them by the Competition Authorities for the breach of those rules. An effective competition compliance program ("CCP") may help companies to stay out of trouble and ensure compliance with the law, and hence to save their money and reputation by informing them about competition infringements beforehand.

In addition to that a sincerely implemented CCP showing good intentions of the company to adhere to competition rules may serve as a mitigating factor, a defence leading to a reduction in fines/sanctions, in case of prosecution by the Regulator for a competition law violation. Although, the Competition Authorities of various jurisdictions are rather divergent and inconsistent in their views on whether or not the existence of the CCP shall be treated as a