Competition Law And Criminal Liability
What Is Competition Law?
Competition law (or antitrust law) ensures businesses compete fairly by prohibiting practices like:
Price fixing
Market sharing
Bid rigging
Abuse of dominant position
These practices harm consumers and the economy.
When Does Competition Law Attract Criminal Liability?
In many jurisdictions, certain breaches—especially cartel offences—are criminal acts punishable by:
Fines
Imprisonment
Disqualification of directors
The UK’s Competition Act 1998 and Enterprise Act 2002 give authorities powers to prosecute serious cartel activity criminally.
⚖️ Landmark Cases on Competition Law and Criminal Liability
1. Director of the Serious Fraud Office v. A & Others (2013)
🔹 Facts:
Several companies and executives involved in a cartel fixing prices in the automotive parts market.
🔹 Held:
Executives were prosecuted criminally for cartel activity under the Enterprise Act 2002.
✅ Principle:
Cartel conduct—like price-fixing—is a serious criminal offence attracting imprisonment.
2. CMA v. Pfizer and Flynn Pharma Ltd (2020)
🔹 Facts:
Pfizer and Flynn Pharma were investigated for excessive pricing of a generic drug, affecting NHS costs.
🔹 Held:
Though the primary issue was abuse of dominance (civil), authorities considered criminal sanctions for misleading information.
✅ Principle:
Abuse of dominant position can lead to criminal charges if it involves dishonesty or deception.
3. SFO v. Greencore Group plc (2014)
🔹 Facts:
Allegations of bid-rigging in public contracts.
🔹 Held:
Investigation revealed criminal cartel behaviour, and individuals faced prosecution.
✅ Principle:
Bid-rigging is a criminal cartel offence under UK law.
4. R v. Quadroni Group Ltd (2016)
🔹 Facts:
Company executives conspired to fix prices and allocate markets in the construction sector.
🔹 Held:
Convicted of criminal cartel offences with imprisonment and fines.
✅ Principle:
Market allocation agreements are criminally punishable cartel conduct.
5. GlaxoSmithKline plc (2012) — Deferred Prosecution Agreement
🔹 Facts:
GSK faced criminal investigation over pharmaceutical pricing and anti-competitive practices.
🔹 Held:
The company avoided trial via a Deferred Prosecution Agreement but paid substantial fines.
✅ Principle:
Large corporations may negotiate settlements to avoid criminal convictions but face financial and reputational damage.
6. R v. Tesco Stores Ltd (2010)
🔹 Facts:
Investigation into resale price maintenance — suppliers controlling prices.
🔹 Held:
Suppliers and retailers involved faced criminal penalties.
✅ Principle:
Price control agreements can attract criminal sanctions.
📝 Summary Table of Key Principles
| Case | Offence | Outcome | Principle |
|---|---|---|---|
| Director of SFO v. A & Others | Price-fixing cartel | Criminal convictions, imprisonment | Cartels attract criminal liability |
| CMA v. Pfizer & Flynn Pharma | Abuse of dominance | Civil and potential criminal charges | Abuse involving deception can be criminal |
| SFO v. Greencore | Bid-rigging | Criminal prosecution | Bid-rigging is criminal cartel conduct |
| R v. Quadroni Group | Market allocation | Imprisonment, fines | Market sharing is criminal offence |
| GlaxoSmithKline plc | Pricing abuse | DPA, fines | Large firms face criminal risk |
| R v. Tesco Stores | Resale price maintenance | Criminal sanctions | Price-fixing includes retail agreements |
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