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ArticlesMarch 10, 20240

The Iimportance of the compliance plan in the field of Competition Law

Competition law is a legal field that regulates the behavior of economic agents in the market, with the aim of ensuring fair and efficient competition for the benefit of consumers and economic development. Violating competition law norms can have serious consequences for companies, such as fines, damages, bans, criminal sanctions, or reputational damage. This is also demonstrated by the recent practice of the Competition Council, which reports on the application of sanctions to major players in the electronics market as a result of their entering into an anticompetitive agreement that led to increased prices for consumers for mobile phones and televisions, caused by the fixing of resale prices.

In this context, we draw attention to the fact that it is essential for firms to comply with competition rules and prevent any risk of violating these norms. To do this, it is recommended that they adopt a compliance plan, i.e., a set of internal measures aimed at informing, training, and monitoring employees and business partners regarding the compliance with competition norms and how to apply them in practice.

An effective compliance plan has several advantages for a company, such as:

  • Reducing the risk of involvement in violations of competition law, such as cartels, abuses of dominant position, restrictive agreements, or dumping practices;
  • Reducing the costs associated with investigations, sanctions, or litigation in matters of competition, which can affect the financial, human, and temporal resources of the company;
  • Strengthening the company’s image and reputation in the market, as being responsible, transparent, and respectful towards customers, suppliers, and even competitors;
  • Increasing the competitiveness and performance of the company, by stimulating innovation, efficiency, and the quality of the products and services offered.

To develop and implement an appropriate compliance plan, a company must follow several essential steps, such as:

    • Appointing a person responsible for coordinating and supervising the compliance plan, who has authority, independence, and sufficient resources to carry out this task;
    • Conducting a risk analysis to identify areas of the company’s activity that are exposed to potential violations of competition law, as well as factors that favor them;
    • Developing a code of conduct that establishes the principles, rules, and procedures that the company and its employees must follow in their relationships with customers, suppliers, competitors, and competition authorities;
    • Organizing information and training sessions to raise awareness and educate employees and business partners about the importance and content of the compliance plan, as well as the consequences of not adhering to it;
    • Implementing monitoring, control, and audit mechanisms to periodically check compliance with the compliance plan, detect possible deviations, and propose corrective or preventive measures;
    • Periodically evaluating and reviewing the compliance plan to adapt it to legislative, economic, and competitive developments in the market.

In conclusion, a compliance plan in the field of competition law is a useful and necessary tool for any company operating in a competitive market. Such a plan not only protects the company from the risks and costs associated with violating competition norms but also contributes to increasing the value and quality of its market offering.

For further information or any additional inquiries, please do not hesitate to contact us:

➡ Phone: (+4) 031 426 0745
📧 Email: office@grecupartners.ro

We are here to assist and provide legal support for all your needs. We look forward to discussing with you.

Mihaela Balau – Attorney at Law

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