What legal consequences do I face as a company if I make unauthorized agreements with competitors?
July 10, 2023 | 30,00 EUR | answered by Georg Sauer
Dear lawyer,
My name is Felix Herrmann and I am the managing director of a medium-sized company in the automotive industry. Lately, I have noticed that some of my competitors are offering similar products at similar prices to ours. I suspect that there may have been unlawful agreements between us and the competitors.
The current situation is that we are operating in a highly competitive environment and it is important for us to differentiate ourselves from the competition and be able to act fairly in the market. However, I am concerned about the possibility that we may be operating in a grey area of competition law.
My worries are that we may be committing a crime if we make unlawful agreements with our competitors. I am concerned about possible legal consequences for my company and my personal liability as the managing director.
My question to you as an expert in competition law is, what legal consequences could we face if we do indeed make unlawful agreements with competitors? Are there ways to avoid or rectify such situations if agreements have already been made?
Thank you in advance for your support and advice.
Sincerely,
Felix Herrmann
Dear Mr. Herrmann,
Thank you for your inquiry and your trust in my expertise in the field of competition law. As the managing director of a medium-sized company in the automotive industry, it is understandable that you are concerned about possible unlawful agreements with your competitors and the legal consequences associated with them.
First and foremost, it is important to emphasize that unlawful agreements between companies in competition law are referred to as cartel law and typically fall under the prohibition of agreements that restrict competition (§ 1 GWB). Such agreements can take various forms, such as price-fixing, market allocation, or territorial restrictions. These violate the cartel prohibition and can result in significant fines.
The legal consequences for your company and you personally as the managing director can be severe. In addition to financial penalties, there is also the risk of damage to reputation and a loss of trust from your customers and business partners. As a managing director, you have a special responsibility and can be held personally liable in case of cartel violations.
To avoid or rectify such situations, I recommend being transparent and establishing clear internal rules and control mechanisms within the company. It is important that employees are informed about the legal risks of agreements and are sensitized to them. Additionally, if there is suspicion of unlawful agreements, it is important to seek legal advice promptly and consider self-reporting to the competition authorities.
In any case, it is advisable to consult with a competition law attorney early on to receive individual advice and support. Together, we can work on possible solutions to protect your company from legal consequences and to be able to operate fairly in the market.
I am available to further discuss your questions and to talk about specific measures. Thank you once again for your inquiry and your trust.
Best regards,
Georg Sauer, Attorney
